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Atlantic Provinces -> Newfoundland & Labrador -> NL Personal Tax Credits

Newfoundland & Labrador Non-Refundable Personal Tax Credits

For information on the amounts of most non- refundable tax credits available to Newfoundland and Labrador residents, see the non-refundable personal tax credits page.

NL Low-Income Tax Reduction

NL Income Tax Act, 2000 s. 21.1
bullet available to low income individuals and families
bullet amount received depends on individual or family net income
bullet cannot exceed NL tax payable (not refundable)

See Canada Revenue Agency ( CRA) form NL428 from the  Newfoundland and Labrador General Income Tax and Benefit Package page for detailed calculation.

The 2016 low-income tax reduction factors are:

bullet Income thresholds
bullet$19,031 for individuals ($19,412 for 2017)
bullet$32,180 for families ($32,824 for 2017)
bulletBasic reduction $746 ($761 for 2017)
bulletSpouse/common-law partner or eligible dependent $415 ($423 for 2017) 
bulletAmounts are reduced by 16% of adjusted family income in excess of thresholds

The low-income tax reduction thresholds are increased for inflation each year.

NL Child Care Costs

The 2011 provincial budget introduced a non-refundable tax credit for child care costs, beginning in 2011.  Because child care costs are initially claimed as a deduction from income, provincial taxes payable are reduced.  The tax credit provides an additional reduction of the provincial taxes payable.  The tax credit is calculated by multiplying the child care costs by the lowest personal tax rate.  The tax credit is claimed by the individual who claims the child care costs.  The Canadian Tax Calculator calculates this tax credit, based on the child care costs entered in the deductions area.  However, the costs are not checked to ensure that the maximum allowable is not exceeded.  See also our article on Child Care Costs.

Newfoundland & Labrador Refundable Tax Credits

NL Low Income Seniors' Benefit (NLSB)

NL Income Tax Act, 2000 s. 34(4)(b)

Effective for 2016 and later years:

bullet refundable tax credit, payable even when the senior has no tax payable
bullet combined with the October GST/HST credit payment
bullet to qualify, the person must be 65 years of age by December 31st of the taxation year
bullet annual benefit of $1,313 per year for 2016, reduced by 11.66% of net income over $29,402
bulletreduced to zero at net incomes of $40,663 or more
bullet where both spouses qualify, the benefit is paid only once
bullet threshold and annual benefit amounts are indexed for inflation each year

Enhancements announced in NL 2016 Budget, effective for October 2016 payment:

bullet maximum payment will be $1,313, up from $1,063 in 2014, and $971 in 2013

NL Income Supplement (previously Harmonized Sales Tax Credit (NLHSTC))

NL Income Tax Act, 2000 s. 34
bullet for low income individuals or families
bullet combined with the quarterly GST/HST credit payments, with first payment of 2 quarterly payments in October 2016
bullet basic annual credit of $220 for eligible individuals, maximum annual credit of $450
bullet the additional $230 will be phased in at a rate of 4.6% of family net income over $15,000
bullet eligible individuals with family net income of $20,000 to $40,000 will receive the maximum credit of $450
bullet the phase-out of the benefit begins at family net income of $40,000, at a rate of 9%
bullet annual amounts of $60 for spouse, $200 for eligible children, and $200 for individuals claiming the disability tax credit

See also:

bullet Provincial tax credits paid with the GST/HST credit

NL government resources:

bulletLow Income Supplement and the Seniors' Benefit

CRA resources:

bullet Provincial benefits that are combined with the GST/HST credit
bullet Newfoundland & Labrador Senior's Benefit (NLSB)
bullet Newfoundland & Labrador Income Supplement

Tax tip:  File a tax return even if you have no income, to get the refundable tax credits.

 

Revised: November 02, 2016

 

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