What’s in this article?
The Newfoundland and Labrador low income tax reduction is a non-refundable tax credit for low income individuals and families which helps to reduce provincial tax payable. You may be eligible to apply for this credit if your net income or your family’s net income falls below a certain threshold.
The tax reduction is calculated and claimed on the Newfoundland and Labrador NL428 form. If you have a spouse or common-law partner at the end of the year, you have to decide who is going to make the claim. Any unused amount can be transferred to the other spouse or common-law partner.
You are eligible to claim the low-income tax reduction if you are a resident of Newfoundland and Labrador on December 31st and either your net income or your family’s net income falls below the threshold.
If you indicated that your marital status was single, widowed, divorced, or separated, H&R Block’s tax software will automatically apply this credit to your return. If however you indicated that you have a spouse or common-law partner, you will have to choose which of you will be claiming the credit. To do this:
1. Click the WRAP-UP tab.
2. Click the OPTIMIZATION icon. You will find yourself here:
3. Under the Credits that can only be claimed by one person heading, click the name of the person that will be claiming the credit.
- Low income tax reduction (Government of Newfoundland and Labrador website)
- Newfoundland and Labrador low-income tax reduction (CRA website)