Nova Scotia – Low-income tax reduction

What’s in this article?

 

What is this?

The Nova Scotia low-income tax reduction is a non-refundable tax credit that can be claimed by low income individuals and families to help reduce provincial tax payable. If you had a spouse or common-law partner as of December 31st, you must decide which of you will claim the credit as it can only be claimed once per family.

Note: You cannot claim the low-income tax reduction if you were confined to a prison or a similar institution on December 31st and had been there for a total of more than six months during the year.

Government of Nova Scotia says…

The Nova Scotia personal income tax system provides an additional tax reduction for individuals and families with low incomes. Depending on adjusted family income, this reduction could decrease a family’s taxes by $300 for the taxfiler plus $300 for a spouse or eligible dependent plus $165 per dependent child.

 

Am I eligible?

You are eligible to claim the Nova Scotia low-income tax reduction if you were a resident of Nova Scotia on December 31st and any of the following apply:

  • you were 19 years of age or older;
  • you had a spouse/common-law partner; or
  • you were a parent

 

Where do I claim this?

If you indicated your marital status as of December 31st was single, widowed, divorced, or separated, H&R Block’s tax software will automatically claim the credit on your return. If however, you indicated that you have a spouse or common-law partner, you will have to decide who will claim the credit.

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

If you and your spouse or common-law partner are filing your returns together:

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, select the person that will be claiming the Nova Scotia low-income tax reduction credit.

 

If you and your spouse or common-law partner are filing your returns separately:

1. Click the WRAP-UP tab.
2. Click the OPTIMIZATION icon. You will find yourself here:


3. Click the checkbox labelled Claim the Nova Scotia low-income tax reduction credit if you will be the one claiming the credit.

 

Where can I learn more?