TaxTips.ca
Canadian Tax and
Financial Information
NL Personal Tax Credits

TaxTips.ca does not research or endorse any product   or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Business Directory.    

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Business Directory
Advertise With Us
Contact Us/About Us
Links & Resources


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.

Sponsored Advertisement

NL low-income tax reduction

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 NL 2014 budget announced that the low-income tax reduction would be enhanced:

bulletChanges are effective for the 2014 taxation year
bullet

Income thresholds to be increased
bullet

from $17,547 to $18,547 for individuals

bullet

from $29,362 to $31,362 for families

bullet

An individual with income of $19,000 to $22,000 will save $231 annually

bullet

A family with net income of $32,000 to $35,000 will save $463 annually, less for other net incomes

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.

Refundable tax credits

NL low income seniors' benefit (NLSB)

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

Effective for 2008

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 $776 per year, reduced by 11.66% of net income over $25,275

bullet

phased out at net incomes of $31,930 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 2014 Budget, effective for October 2014 payment:
bullet

maximum payment will be $1,036, up from $971 in 2013

NL government resources:

bullet

Low Income Seniors' Benefit

bullet

Seniors' Benefit Regulations, 2007

CRA resources:

bullet

Newfoundland & Labrador Senior's Benefit (NLSB)

NL harmonized sales tax credit (NLHSTC)

NL Income Tax Act, 2000 s. 34
bullet

for low income individuals or families

bullet

combined with the October GST/HST credit payment

bullet

annual payment of $40 per adult and $60 for each child under 19, reduced by 5% of the amount of adjusted family net income over $15,000.

See also:

bullet

Provincial tax credits paid with the GST/HST credit

CRA resources:

bullet

Provincial benefits that are combined with the GST/HST credit

bullet

Newfoundland & Labrador Harmonized Sales Tax Credit (NLHSTC)

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

 

Revised: March 27, 2014

 

Sponsored Advertisement

Copyright © 2002 - 2014 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook | Twitter | Google + | Monthly Newsletter Sign-up | What’s New E-mail Notification | RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. See our Business Directory for tax, accounting and finance-related firms in your area.
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.