ARCHIVED - Information for Residents of the Northwest Territories

5012-PC(E) Rev.17

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Table of contents

What's new for 2017?

We list the service enhancements and major changes below, including announced income tax changes that were not law when this information was published. You will find more information about these changes or any other recent developments in the General Income Tax and Benefit Guide (the guide).

Our services

Address and direct deposit changes – If you are registered for the full version of CRA’s My Account or CRA’s mobile apps, you can change your address and update your direct deposit information in participating NETFILE certified tax preparation software. For more information, go to NETFILE – Overview.

ReFILE – This service allows you to submit a request to adjust your return using NETFILE.

Individuals and families 

Scholarships, fellowships, bursaries, and artists' project grants exemption (line 130) – The eligibility for the exemption has been enhanced under certain conditions to include scholarships and bursaries received for occupational skills courses that are not at the post-secondary level.

Canada caregiver amount – The Canada caregiver amount has replaced the family caregiver amount, the amount for infirm dependants age 18 or older (line 306), and the caregiver amount (line 315). You could be entitled to claim this amount in the calculation of certain non-refundable tax credits if the person you are making the claim for has an impairment in physical or mental functions.

Your tuition, education, and textbook amounts (line 323) – As of January 1, 2017, the federal education and textbook amounts have been eliminated. The eligibility criteria for the tuition amount has been enhanced under certain conditions to include fees paid for occupational skills courses that are not at the post-secondary level.

Medical expenses (lines 330 and 331) – Individuals who need medical intervention to conceive a child are eligible to claim the same expenses as individuals with medical infertility. You can also request an adjustment to claim such medical expenses on any income tax return for the 10 previous calendar years. See Eligible medical expenses and How to change a return.

Donations and gifts (line 349) – A gift of ecologically-sensitive land cannot be made to a private foundation after March 21, 2017. There are also a number of changes to the Ecological Gifts Program. For more information, see “Gifts of ecologically-sensitive land,” in Pamphlet P113, Gifts and Income Tax.

Public transit amount (line 364) – As of July 1, 2017, this amount has been eliminated.

Children’s arts amount (line 370) – As of January 1, 2017, this amount has been eliminated.

Children’s fitness tax credit (lines 458 and 459) – As of January 1, 2017, this credit has been eliminated.

Disability tax credit (DTC) certification – As of March 22, 2017, nurse practitioners have been added to the list of medical practitioners who may certify eligibility of a person for the DTC. See Guide RC4064, Disability-Related Information

Interest and investments 

Investment tax credit (line 412) – Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 1, 2018. In addition, as of March 22, 2017, expenses for the creation of child care spaces are no longer eligible for the investment tax credit.

Labour-sponsored funds tax credit (lines 411 and 419) – As of January 1, 2017, the tax credit for the purchase of shares of federally registered labour-sponsored venture capital corporations (LSVCC) has been eliminated. The provincially registered LSVCC can still be claimed on lines 413 and 414.

Northwest Territories

The income levels and most of the non-refundable tax credits used to calculate your Northwest Territories income tax have changed.

Getting ready to do your taxes 

Use this checklist to get ready to file your tax return. Filing a tax return on time will ensure you get all the benefits and credits you are entitled to and that your benefit payments are not delayed or stopped.

Did you know

There are benefits to filing a tax return even if you don’t earn income!

Filing early ensures your benefit and credit payments are not delayed or stopped. These include:

If you have a spouse or common-law partner, he or she should also file a return early. 

Getting the right benefit amount

Changes to your marital status, the number of children in your care, or your address directly affect your benefit payments. Let us know to avoid delays and incorrect payments.

Update your personal information with the CRA using one of these online tools:

Do you have to file a return?

Some of the most common reasons when you must file a tax return are:

Even if none of these requirements applies to you, you should still file a return if:

For other reasons to file, go to Your tax obligations.

Return due date

File your 2017 tax return on or before April 30, 2018.

Self-employed persons – File your 2017 tax return on or before June 15, 2018, if you or your spouse or common-law partner ran a business in 2017. However, file by April 30, 2018 if your business expenditures are primarily in connection with a tax shelter.

Deceased persons – See Guide T4011, Preparing Returns for Deceased Persons or go to Important dates for Individuals.

Payment due date

Pay any balance due for 2017 on or before April 30, 2018.

You can pay online or in person. For more information, go to Make a payment to the Canada Revenue Agency or contact your financial institution.

If you can’t pay your taxes by April 30, 2018, go to When you owe money – collections at the CRA.

Penalties and interest

Penalties – The CRA may charge you a penalty if:

Interest – If you have a balance owing for 2017, the CRA charges compound daily interest starting May 1, 2018, on any unpaid amounts owing for 2017. This includes any balance owing if the CRA reassesses your return.

Note

The CRA may cancel or waive penalties or interest if you are unable to meet your tax obligations due to circumstances beyond your control. For more information, go to Taxpayer relief provisions.

Ways to file your tax return

NETFILE – Use our secure service to complete and file your tax return electronically using tax preparation software or a web tax application. Go to NETFILE – Overview for a list of available software and applications; including free ones.

EFILE – This is a secure service that lets authorized service providers, including a discounter, complete and file your return electronically. For more information, go to EFILE for individuals.

Auto-fill my return – This is a secure CRA service that automatically fills in certain parts of your current year return. You must be registered with MyAccount and be using a certified software product that offers this option. For more information, go to About Auto-fill my return.

File a paper return – Mail your return to your tax centre at the address given on the back of your forms book. If you prepare your return or other people’s returns, mail each person’s return in a separate envelope. However, if you file returns for more than one year for the same person, put them all in one envelope. 

Processing time

Our goal is to send you a notice of assessment, as well as any refund, within:

Need help doing your taxes?

Community Volunteer Income Tax Program – If you have a modest income and a simple tax situation, community organization volunteers may be able to prepare your return for you. For more information, go to Volunteer to do taxes for people in your community.

Tax information videos – For videos on topics such as the income tax and benefit return, the Canadian tax system, tax measures for persons with disabilities, registering for MyAccount and much more, go to CRA Multimedia library.

Tax information phone service (TIPS) – For personal and general tax information by telephone, use the CRA’s automated service, TIPS, by calling 1-800-267-6999.

Individual tax enquiries – Call 1-800-959-8281 to speak to an agent.

Direct deposit

Direct deposit is a fast, convenient, reliable, and secure way to get your CRA payments directly into your account at a financial institution in Canada. To enrol for direct deposit or to update your banking information, go to Direct deposit.

Remember

Northwest Territories child benefit

This benefit is a non-taxable amount paid monthly to provide support to low and middle income qualifying families with children under 18 years of age. This amount is combined with the Canada child benefit into a single monthly payment.

There is no need to apply separately to get payments under this program. The Canada Revenue Agency (CRA) will use the information from your Canada child benefits application to determine your eligibility for the program.

File your return – You (and your spouse or common-law partner) need to file your 2017 income tax and benefit return(s) to receive the Northwest Territories child benefit. The information you give on your return(s) will determine how much you will get starting in July 2018. To make sure your payments arrive on time, the return(s) should be filed by April 30, 2018.

This program is fully funded by the Northwest Territories.

For more information about this program, go to Northwest Territories child benefit or call the CRA at 1-800-387-1193.

Completing your Northwest Territories forms

You can download and print a copy of Form NT428, Northwest Territories Tax, and Form NT479, Northwest Territories Credit, which you need to calculate your Northwest Territories tax and credits. Complete the forms that apply to you, and attach a copy to your return.

The following information will help you complete Form NT428 and Form NT479.

The terms spouse and common-law partner are defined in the General Income Tax and Benefit Guide.

The term end of the year means December 31, 2017, the date you left Canada if you emigrated in 2017, or the date of death for a person who died in 2017.

Tax Tip

You should calculate your federal tax first since many rules for calculating Northwest Territories tax are based on the federal Income Tax Act.

Form NT428, Northwest Territories Tax

Complete Form NT428 if you were a resident of the Northwest Territories at the end of the year.

If you had income from a business (including income you received as a limited or non-active partner), and the business has a permanent establishment outside the Northwest Territories, complete Form T2203, Provincial and Territorial Taxes for 2017 – Multiple Jurisdictions, instead of completing Form NT428.

You also have to complete Form NT428 if you were a non-resident of Canada in 2017 and you earned income from employment in the Northwest Territories or received income from a business with a permanent establishment only in the Northwest Territories.

Step 1 – Northwest Territories non-refundable tax credits

The eligibility criteria and rules for claiming most of the Northwest Territories non-refundable tax credits are the same as for the federal non-refundable tax credits. However, the value and calculation of most Northwest Territories non-refundable tax credits are different from the corresponding federal credits.

Newcomers to Canada and emigrants

If you prorated any of the amounts you claimed on lines 300 to 307, 316, 318, 324, and 326 of your federal Schedule 1, you have to prorate the corresponding territorial amounts on lines 5804 to 5820, 5840, 5844, 5848, 5860, and 5864.

Line 5804 – Basic personal amount

Claim $14,278.

Line 5808 – Age amount

You can claim this amount if you were 65 years of age or older on December 31, 2017, and your net income (line 236 of your return) is less than $82,990.

If your net income is:

Tax Tip

You may be able to transfer all or part of your age amount to your spouse or common-law partner or to claim all or part of his or her age amount. For more information, read line 5864.

Line 5812 – Spouse or common-law partner amount

You can claim this amount if the rules are met for claiming the amount on line 303 of federal Schedule 1 and your spouse's or common-law partner's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $14,278.

Complete the calculation on Form NT428, and enter the amount on line 5812.

Note

Enter your marital status and the information about your spouse or common-law partner (including his or her net income, even if it is zero) in the "Step 1 – Identification and other information" area on page 1 of your return.

Line 5816 – Amount for an eligible dependant

You can claim this amount if the rules are met for claiming the amount on line 305 of federal Schedule 1 and your dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $14,278.

Complete the calculation on Form NT428, and enter the amount on line 5816.

Note

If you were a single parent on December 31, 2017, and you choose to include all the universal child care benefit (UCCB) lump-sum payment you received in 2017 in the income of your dependant, include this amount in the calculation of his or her net income.

Line 5820 – Amount for infirm dependants age 18 or older

You can claim an amount up to a maximum of $4,733 for each of your or your spouse’s or common-law partner’s dependent children or grandchildren only if that person had an impairment in physical or mental functions and was born in 1999 or earlier.

You can also claim an amount for more than one person if each one meets all the following conditions. The person must have been:

Notes

A parent includes someone on whom you were completely dependent and who had custody and control of you when you were under 19 years of age.

A child can include someone older than you who has become completely dependent on you for support and over whom you have custody and control. 

You can claim an amount only if the dependant’s net income (line 236 of his or her return, or the amount it would be if he or she filed a return) is less than $11,448.

If you had to make support payments for a child, you cannot claim an amount on line 5820 for that child. However, if you were separated from your spouse or common-law partner for only part of 2017 because of a breakdown in your relationship, you may be able to claim an amount for that child on line 5820 if you do not claim any support amounts paid to your spouse or common-law partner on line 220 of your return. You can claim whichever is better for you.

How to claim this amount

For each of your dependants, calculate his or her net income (line 236 of his or her return, or the amount it would be if he or she filed a return). Complete the calculation for line 5820 on the Territorial Worksheet.

The CRA may ask for a signed statement from a medical practitioner showing the nature of the impairment, when the impairment began, what the duration of the impairment is expected to be, and that because of an impairment in physical or mental functions, the person is, and will continue to be, dependent on others.

Claim made by more than one person – If you and another person support the same dependant, you can split the claim for that dependant. However, the total amount of your claim and the other person’s claim cannot exceed the maximum amount allowed for that dependant.

Line 5824 – CPP or QPP contributions through employment

Enter on this line the amount you claimed on line 308 of your federal Schedule 1.

Line 5828 – CPP or QPP contributions on self-employment and other earnings

Enter on this line the amount you claimed on line 310 of your federal Schedule 1.

Line 5832 – Employment insurance premiums through employment

Enter on this line the amount you claimed on line 312 of your federal Schedule 1.

Line 5829 – Employment insurance premiums on self-employment and other eligible earnings

Enter on this line the amount you claimed on line 317 of your federal Schedule 1.

Line 5836 – Pension income amount

You can claim this amount if you met the rules for claiming the amount on line 314 of federal Schedule 1.

The amount you can claim on line 5836 is the amount on line 314 of your federal Schedule 1, or $1,000, whichever is less.

Line 5840 – Caregiver amount

If at any time in 2017 you (alone or with another person) kept a dwelling where you and one or more of your dependants lived, you may be able to claim a maximum amount of $4,733 for each dependant.

Each dependant must have been one of the following persons:

Also, each dependant must meet all the following conditions. The person must have:

If you had to make support payments for a child, you cannot claim an amount on line 5840 for that child. However, if you were separated from your spouse or common-law partner for only part of 2017 because of a breakdown in your relationship, you may be able to claim an amount for that child on line 5840 (in addition to any allowable amounts on lines 5816 and 5848) if you do not claim any support amounts paid to your spouse or common-law partner on line 220 of your return. You can claim whichever amount is better for you.

How to claim this amount

For each of your dependants, calculate his or her net income (line 236 of his or her return, or the amount it would be if he or she filed a return). Complete the calculation for line 5840 on the Territorial Worksheet.

Claim made by more than one person – If you and another person support the same dependant, you can split the claim for that dependant. However, the total of your claim and the other person’s claim cannot be more than the maximum amount allowed for that dependant.

If anyone (including you) can claim this amount for a dependant, no one can claim an amount on line 5820 for that dependant. If anyone other than you claims an amount on line 5816 for a dependant, you cannot claim an amount on line 5840 for that dependant. 

Line 5844 – Disability amount (for self)

You can claim this amount if you met the rules for claiming the amount on line 316 of federal Schedule 1.

If you were 18 years of age or over at the end of the year, enter $11,579 on line 5844.

If you were under 18 years of age at the end of the year, you may be eligible to claim a supplement up to a maximum of $4,733 in addition to the base amount of $11,579. Complete the calculation for line 5844 on the Territorial Worksheet.

Line 5848 – Disability amount transferred from a dependant

You can claim this amount if the rules are met for claiming the amount on line 318 of federal Schedule 1.

Complete the calculation for line 5848 on the Territorial Worksheet.

Line 5852 – Interest paid on your student loans

Enter on this line the amount you claimed on line 319 of your federal Schedule 1.

Line 5856 – Your tuition and education amounts

Complete Schedule NT(S11), Territorial Tuition and Education Amounts.

Supporting documents – If you are filing online, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your completed Schedule NT(S11), but do not send your other documents. Keep all your documents in case we ask to see them later.

Transferring and carrying forward amounts

You may not need all of your 2017 tuition and education amounts to reduce your territorial income tax to zero. In this case, you can transfer all or some of the unused part to one person, either your spouse or common-law partner (who would claim it on line 5864) or your or your spouse's or common-law partner's parent or grandparent (who would claim it on line 5860).

You can only transfer an amount to your parent or grandparent, or your spouse's or common-law partner's parent or grandparent, if your spouse or common-law partner does not claim an amount for you on line 5812 or 5864.

To designate who can claim the transferred amount and to specify the amount this person can claim, complete the "Transfer/Carryforward of unused amount" section of Schedule NT(S11) to calculate the territorial amount available to transfer, as well as the related form: 

The transferred amount may be different from the amount calculated for the same person on your federal Schedule 11. Enter the territorial amount you are transferring on line 20 of your Schedule NT(S11).

Tax Tip

If you are transferring an amount to a designated individual, only transfer the amount this person can use. That way, you can carry forward as much as possible to use in a future year.

Complete the "Transfer/Carryforward of unused amount" section of Schedule NT(S11) to calculate the amount you can carry forward to a future year. This amount corresponds to the part of your tuition and education amounts you do not need to use (and do not transfer) for the year.

Line 5860 – Tuition and education amounts transferred from a child

If you are the parent or grandparent of a student or his or her spouse or common-law partner, the student may be able to transfer to you all or part of his or her unused tuition and education amounts for 2017. The maximum transferable amount from each student is $5,000 minus the amounts he or she uses, even if there is still an unclaimed part.

Enter on line 5860 the total of all territorial amounts that each student has transferred to you as shown on his or her Form T2202A, TL11A, TL11B, or TL11C.

Notes

The student must have entered this amount on line 20 of his or her Schedule NT(S11). He or she may have chosen to transfer an amount that is less than the available territorial amount. The student cannot transfer to you any unused tuition and education amounts carried forward from a previous year.

If you and the student were residents of different territories or provinces on December 31, 2017, special rules may apply. Contact the Canada Revenue Agency to determine the amount you can claim on line 5860.

Other rules may apply if the student has a spouse or a common-law partner. Read line 324 in the General Income Tax and Benefit Guide.

Supporting documents – If you are filing online or filing a paper return, do not send any documents. Keep all your documents in case we ask to see them later. The student must attach Schedule NT(S11) to his or her paper return.

Line 5864 – Amounts transferred from your spouse or common-law partner

You can claim these amounts if the rules are met for claiming an amount on line 326 of federal Schedule 1.

Complete Schedule NT(S2), Territorial Amounts Transferred From Your Spouse or Common-law Partner, and attach a copy to your return.

Line 5868 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2000 or later

The medical expenses you can claim on line 5868 are the same as those you can claim on line 330 of your federal Schedule 1. They have to cover the same 12-month period ending in 2017, and no one claimed them on a 2016 return.

Line 5872 – Allowable amount of medical expenses for other dependants

In addition to the medical expenses claimed on line 5868, you can also claim medical expenses for other dependants.

The medical expenses you can claim on line 5872 are the same as those you can claim on line 331 of your federal Schedule 1. They have to cover the same 12-month period ending in 2017, and no one claimed them on a 2016 return.

The maximum amount you can claim is $5,000 for each dependant.

Complete the calculation for line 5872 on the Territorial Worksheet.

Line 5896 – Donations and gifts

Enter the amounts from lines 16 and 17 of your federal Schedule 9 and multiply them by the rates on lines 26 and 27 of Form NT428.

Step 2 – Northwest Territories tax on taxable income

Enter on line 30 your taxable income from line 260 of your return. Complete the appropriate column depending on the amount entered.

Step 3 – Northwest Territories tax

Line 39 – Northwest Territories tax on split income

If you have to pay federal tax on split income on line 424 of your federal Schedule 1, complete Part 2 of Form T1206, Tax on Split Income, to calculate the Northwest Territories tax that applies to this income.

Form T1206 also contains a special rule that applies to the amount you enter on line 428 of your return. For more information on tax on split income, see the General Income Tax and Benefit Guide.

Line 46 – Northwest Territories additional tax for minimum tax purposes

If you have to pay federal minimum tax as calculated on Form T691, Alternative Minimum Tax, you will have to determine your Northwest Territories additional tax for minimum tax purposes.

To do this, complete the calculation on line 46 of Form NT428.

For more information about minimum tax, see the General Income Tax and Benefit Guide.

Line 48 – Territorial foreign tax credit

If your federal foreign tax credit on non-business income is less than the related tax you paid to a foreign country, you may be eligible to claim a territorial foreign tax credit.

To claim this credit, complete Form T2036, Provincial or Territorial Foreign Tax Credit.

Enter on line 48 of Form NT428, the amount from line 5 of Form T2036.

Supporting documents – If you are filing online, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your Form T2036.

Lines 50 and 51 – Political contribution tax credit

You can claim this credit if in 2017 you contributed to a candidate seeking election to the Northwest Territories Legislative Assembly.

How to claim this credit

Enter your total contributions on line 50 of Form NT428, and calculate the amount to enter on line 51 as follows:

Supporting documents – If you are filing online, keep all your documents in case we ask to see them later. If you are filing a paper return, for each contribution attach the official receipt signed by an official agent of the candidate.

Form NT479, Northwest Territories Credit

Lines 1 to 14 – Cost of living tax credit

If you were a resident of the Northwest Territories at the end of the year, you can claim the cost of living tax credit, which may include a supplement for you and your spouse or common-law partner. If your credit is more than the tax you owe, you will receive a refund for the difference.

If you had a spouse or common-law partner on December 31, 2017, and you and your spouse or common-law partner are eligible for the cost of living tax credit supplement, you and your spouse or common-law partner have to decide which one of you will claim this supplement as only one of you can claim this credit for your family.

As a resident of the Northwest Territories, you or your spouse or common-law partner may have income from a business with a permanent establishment outside the Northwest Territories. If so, enter, on line 1 of Form NT479, the net income allocated to the Northwest Territories from column 4 of Form T2203, Provincial and Territorial Taxes for 2017 – Multiple Jurisdictions.

For more information

Go online at E-services for individuals for more information and to use our services and tools.

If you have questions about the Northwest Territories political contribution or cost of living tax credits, contact:

Fiscal Policy Division
Department of Finance
Government of the Northwest Territories
Post Office Box 1320
Yellowknife NT X1A 2L9

Call: 867-767-9158 Ext. 15051 or 1-800-661-0820

Fax: 867-873-0128

Email: NWT_Tax@gov.nt.ca

If you have questions about federal and Northwest Territories personal income tax, or any other tax credits not listed above, call the CRA at 1-800-959-8281.

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