T1285 : Nova Scotia Equity Tax Credit

What’s in this article?

 

What is this?

The Nova Scotia Equity Tax Credit is a non-refundable credit calculated on form T1285 : Nova Scotia Equity Tax Credit. The credit reduces your Nova Scotia provincial tax payable and offers a personal income tax credit to individuals investing in eligible businesses. The maximum credit you can claim is $17,500 per year.

Note: The business that you are investing in must be registered under the ETC (Equity Tax Credit) program.

You can claim this credit for investments in eligible shares you acquired in the tax year (that you did not claim on last year's return) or on shares you acquired in the first 60 days of the current tax year. You will receive an NSETC-1 receipt indicating the amount that you are eligible to claim. If you had any unused amounts from previous years they will show up on your notice of assessment or notice of reassessment.

 

Am I eligible?

Canada Revenue Agency (CRA) says…

You can claim this credit for investments in eligible shares you acquired in 2015 (that you did not claim on your 2014 return) or in the first 60 days of 2016. To claim the credit, complete Form T1285, Nova Scotia Equity Tax Credit.

Supporting documents - If you are filing electronically, keep all of your documents in case we ask to see them at a later date. If you are filing a paper return, attach your Form T1285 along with your NSETC-1 receipt, Nova Scotia Equity Tax Credit.

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

Important: Before you begin, ensure that you told us that you lived in NOVA SCOTIA on December 31st of the 2015 tax year, in H&R Block’s tax software. To do this:

  1. Click the HOME tab.
  2. Click the ABOUT YOU icon, and click the Your residence link. You will find yourself here:

Once you have confirmed your residence location, you can claim the Nova Scotia equity tax credit by following these steps:

  1. Click the PREPARE tab.
  2. Click the YOUR YEAR IN REVIEW icon. You will find yourself here:
  3. Click the checkbox labelled I had investments.
  4. Scroll to the bottom of the page and click Continue.
  5. Click the RRSPS AND INVESTMENTS icon. You will find yourself here:
  6. Under the RESOURCE INCOME AND CREDITS heading, click the checkbox labelled Nova Scotia equity tax credit (T1285).
  7. Click Continue.

When you arrive at the page for your Nova Scotia equity tax credit, enter your information into the tax software.

 

Where can I learn more?