Understanding FPT Deposit in Canada

An FPT deposit in Canada refers to the “Federal-Provincial/Territorial Tax” credit used to fund various government aid programs. If you see this entry on your bank statement, it means you have received the GST/HST credit or the Canada Child Benefit (CCB).

Typically, the FPT deposit is used to pay for federal GST/HST credit, CCB, and provincial schemes like the BC Climate Action Tax Credit. Other provisional benefits managed by the Canada Revenue Agency (CRA) may also be paid under the “FPT” designation, such as the Homeowners’ Property Tax Grant in Ontario or the Climate Action Tax Credit in British Columbia.

The CRA manages these payments, and you can find them on your bank statement listed as “FPT,” “Fed-Prov/Terr Canada,” or a similar designation. If you have any questions about FPT deposits or related benefits, contact the CRA for more information.

Understanding the GST/HST Credit and Canada Child Benefit in 2022

The GST/HST Credit is a monthly tax-free benefit for low- and middle-income Canadians that helps offset some of their GST and HST payments. The credit is automatically deposited into your bank account depending on your income tax return, and a new payment schedule began in July 2021.

For the payment period of July 2021 to June 2022, eligible individuals can receive up to $456 (single), $598 (couples), and $157 for each child under 19 years old. The payment may also include certain provincial and territory credits, depending on where you reside.

The Canada Child Benefit (CCB) is a government program that provides financial assistance to children in Canada. The monthly payment of the CCB will be deposited into your bank account with the title “Canada Child Benefit” or “Canada CCB.”

However, there have been cases where the benefit was paid with the label “Canada FPT.” To ensure that the deposit is for CCB, the payment dates for 2022 are as follows:

• January 20
• February 18
• March 18
• April 20
• May 20
• June 20
• July 20
• August 19
• September 20
• October 20
• November 18
• December 13

The CCB helps to reduce some of the costs of raising children under the age of 18. The maximum CCB amount per child under the age of 6 is $6,833 per year, or $569.41 per month, while children aged 6 to 17 are eligible for up to $5,765 per year, or $480.41 per month. The amount you receive is based on your adjusted family net income (AFNI), and families with an AFNI of under $32,028 receive the maximum benefit for each child.

Who is Eligible for the Canada FPT Deposit?

To qualify for the Canada FPT deposit, you must meet the eligibility criteria for the specific programs it covers. However, the requirements vary depending on the program.

For instance, to qualify for the GST/HST credit payment, you must be a Canadian resident who meets certain criteria. These include being a parent or having a spouse or common-law partner, living with your child(ren), and meeting the income requirements based on Line 23600 of your tax return.

On the other hand, to be eligible for the Canada Child Benefit payment, you must be at least 19 years old, a Canadian resident, have primary responsibility for the child’s upbringing, and meet the financial criteria. If you receive the Child Disability Benefit as part of the CCB, your child must also be eligible for the disability tax credit.

What to Do with Your Canada FPT Deposit?

Maximizing the benefits of your Canada FPT deposit goes beyond using it as part of your tax refund. Putting it towards your financial objectives is a great way to make the most of it.

Some examples include building an emergency fund, contributing to your children’s RESP, saving for retirement, and investing in a TFSA or other financial goals.

EQ Bank is an excellent place to start if you’re considering investing or saving for a specific goal. Their Savings Plus Account is Canada’s leading savings account, with no fees and a competitive interest rate.

For long-term objectives, consider Questrade or Wealth simple. These are Canada’s top investment platforms and brokerages, offering various investment opportunities and resources to help you reach your goals.

FPT Deposits from Canada: How often do I receive them?

If you are eligible for the GST/HST credit, it is paid out in January, April, July, and October. On the other hand, the Canada Child Benefit is disbursed on a monthly basis to eligible recipients.

Understanding the meaning behind the term “Canada FPT” on your bank statement can be confusing, but it simply refers to the federal, provincial, and territorial benefit programs that are paid out by the Canadian government.

In the province of British Columbia, various social programs such as the Canada Child Benefit (CCB), Good and Services Tax/Harmonized Sales Tax Credit (GST/HST), and Climate Action Tax Credit are included in the FPT deposit. These social programs aim to provide financial assistance and support to eligible Canadians.

The FPT deposit on your bank statement may sometimes include payments for GST and HST credits. These tax-free benefits are paid out weekly and may also include additional provincial benefits, such as New Brunswick’s harmonized sales tax credit (NBHSTC) or Nova Scotia’s affordable living tax credit (NSALTC). Therefore, the FPT in Canada is not the same as the GST, but it may include GST and HST credit payments.