What’s in this article?
The Northwest Territories Cost of Living Tax Credit is a refundable credit that can be claimed by any resident of the Northwest Territories regardless of income and is calculated as a percentage of adjusted net income.
Taxpayers over the age of 18 are eligible to claim a cost of living tax credit supplement. The supplement ensures that single taxpayers receive a minimum credit of $350 and ensures families receive a minimum credit of $700. If both you and your spouse or common-law partner qualify for the cost of living tax credit supplement, you must decide which of you will claim the credit as only one claim is allowed to be made per family.
You can claim the Northwest Territories Cost of Living Tax Credit if you were a resident of the Northwest Territories on December 31st.
Important: Before you begin, ensure that you told us you lived in NORTHWEST TERRITORIES on December 31st of the 2015 tax year, in H&R Block’s tax software. To do this:
- Click the HOME tab.
- Click the ABOUT YOU icon and click the Your residence link. You will find yourself here:
Once you have confirmed your residence location, click the Your family link and tell us your marital status.
If you indicated your marital status as single, divorced, separated, or widowed, H&R Block’s tax software will automatically apply the credit to your return.
If however, you indicated that you were married or had a common-law partner you must decide which of you will be claiming the credit. To do this:
- Click the WRAP-UP tab.
- Click the OPTIMIZATION icon. You will find yourself here:
- Under the Credits that can only be claimed by one person heading, click the name of the person that will be claiming the credit.
- Cost of living tax credit (Northwest Territories Government website)