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 Detailed
Canadian
Tax and RRSP Savings 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.
The Newfoundland & Labrador non-refundable volunteer firefighter
tax credit is based on the criteria for the federal
volunteer firefighter tax credit. The amount of the credit is
$3,000 x the lowest NL tax rate.
Effective for 2021 and later years, for individuals who are residents of NL
at the end of the taxation year:
refundable tax credit of 17.4% (8.7% prior to 2023) x claim amount
- This rate is now 2x the lowest personal tax rate, but the Income
Tax Act specifies the rate as 17.4%, not as 2x the lowest personal tax rate,
so it will not necessarily change if the lowest personal tax rate changes.
claimed on the tax return
per family, lesser of:
$2,000 or
total of eligible fitness expenses
maximum tax refund is $348 (17.4% x $2,000) - doubled for 2023 and later
years as per the NL 2023
Budget
family is you plus your spouse or common-law partner, and any dependent
children less than 18 years of age
tax credit can be split between spouses
amounts paid to the taxpayer's parent, spouse or common-law partner or an
individual who is under 18 years of age is not considered an eligible
fitness expense
receipts must be retained, showing:
name & address of organization providing the receipt
name of the eligible program or activity
amount paid, date paid, amount eligible for the tax credit (eligible
fitness expenses)
full name of person paying the expense
authorized signature (except for electronic receipts)
See Physical
Activity Tax Credit on the NL website, which provides detailed information
on eligible fitness expenses.
This benefit started with the 2016 taxation year. A benefit year is July 1st
to June 30th.
Criteria:
refundable tax credit, payable even when the
senior has no tax payable
combined with the GST/HST credit payment
to qualify, the person must be 65 years of age by
December 31st of the taxation year
annual benefit of $1,551 for the 2025 benefit year ($1,516
previously), reduced by 11.66%
of net income over $30,078 ($29,402 previously)
reduced to zero at net incomes of $43,380 ($42,404 previously)
where both spouses qualify, the benefit is paid
only once
threshold and annual benefit amounts are indexed
for inflation each year
combined with the quarterly federal GST/HST credit payment
The NL 2025 Budget announced that the Seniors' Benefit and its eligibility
threshold will be indexed to the consumer price increase, effective July 2025.
See link below to NL website.
NL
Income Supplement (previously Harmonized Sales Tax Credit (NLHSTC))
NL Income Tax Act, 2000 s. 34
for low income individuals or families
combined with quarterly GST/HST credit payments
basic annual credit of $254 for eligible individuals, maximum annual
credit of $520
the additional $266 will be phased in at a rate of 5.32% of family net
income over $15,000
eligible individuals with family net income of $20,000 to $40,000 will
receive the maximum credit of $520
the phase-out of the benefit begins at family net income of $40,000,
at a rate of 9%
annual amounts of $69 for spouse, $231 for eligible children, and $231
for individuals claiming the disability tax credit