What’s in this article?
The Nunavut Cost of Living Tax Credit is a refundable tax credit that can be claimed by any resident of Nunavut, calculated as a percentage of adjusted net income. The maximum that can be claimed is $1,200. Additionally, single parents are also eligible to claim a cost of living supplement.
The Canada Revenue Agency (CRA) says…
You are considered a single parent if at any time in 2015 you met all of the following conditions:
- you are not married or living in a common-law partnership or you are married or in a common-law partnership and are living apart due to a breakdown in the marriage or partnership; and
- you have custody of a child, for at least 50% of the time, who is under 18 years of age or who is 18 years of age or older and is dependant on you due to a mental or physical impairment.
Your cost of living supplement is a percentage of the part of your adjusted net income that is more than $60,000, to a maximum of $255.12.
If you are a resident of Nunavut at the end of the year you can claim the Nunavut Cost of Living Tax Credit.
Provided you told us that you resided in Nunavut at the end of the tax year, H&R Block’s tax software will automatically apply this credit to your tax return.