ARCHIVED - Information for Residents of Nova Scotia

5003-PC Rev.17

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Table of contents

• What's new for 2017?
  • Our services
  • Individuals and families
  • Interests and Investments
• Getting ready to do your taxes
  • Did you know...
  • Getting the right benefit amount
  • Do you have to file a return?
  • Return due date
  • Payment due date
  • Penalties and Interest
  • Ways to file your tax return
  • Processing time
  • Need help doing your taxes
  • Direct deposit
  • For more information
• Nova Scotia benefits for individuals and families
  
  • Nova Scotia child benefit
  • Nova Scotia affordable living tax credit
• Completing your Nova Scotia form
• Form NS428, Nova Scotia Tax and Credits
  • Step 1 – Nova Scotia non-refundable tax credits
    • Newcomers to Canada and emigrants
    • Line 5804 – Basic personal amount
    • Line 5808 – Age amount
    • Line 5812 – Spouse or common-law partner amount
    • Line 5816 – Amount for an eligible dependant
    • Line 5820 – Amount for infirm dependants age 18 or older
    • Line 5823 – Amount for young children
    • Line 5824 – CPP or QPP contributions through employment
    • Line 5828 – CPP or QPP contributions on self-employment and other earnings
    • Line 5832 – Employment insurance premiums through employment
    • Line 5829 – Employment insurance premiums on self employment and other eligible earnings
    • Line 5836 – Pension income amount
    • Line 5840 – Caregiver amount
    • Line 5844 – Disability amount (for self)
    • Line 5848 – Disability amount transferred from a dependant
    • Line 5852 – Interest paid on your student loans
    • Line 5856 – Your tuition and education amounts
    • Line 5860 – Tuition and education amounts transferred from a child
    • Line 5864 – Amounts transferred from your spouse or common-law partner
    • Line 5868 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2000 or later
    • Line 5872 – Allowable amount of medical expenses for other dependants
    • Line 5896 – Donations and gifts
  • Step 2 – Nova Scotia tax on taxable income
  • Step 3 – Nova Scotia tax
    • Line 40 – Nova Scotia tax on split income
    • Line 47 – Nova Scotia additional tax for minimum tax purposes
    • Line 49 – Provincial foreign tax credit
    • Nova Scotia research and development tax credit recapture
    • Nova Scotia low-income tax reduction
    • Line 58 – Basic reduction
    • Line 59 – Reduction for spouse or common-law partner
    • Line 60 – Reduction for an eligible dependant
    • Line 62 – Reduction for dependent children born in 1999 or later
    • Line 71 – Nova Scotia political contribution tax credit
    • Line 73 – Food bank tax credit for farmers
    • Line 75 – Labour-sponsored venture capital tax credit
    • Line 77 – Equity tax credit
    • Line 79 – Age tax credit
    • Line 81 – Nova Scotia volunteer firefighters and ground search and rescue tax credit

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.

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 your 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.

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.

• Gather all your documents such, as T4 and T5 slips, receipts, notice of assessment and last year's tax return.
• Find out if your tax return and payment are due on April 30, 2018.
• Update any changes to your marital status, address or number of children for benefit purposes.
• Sign-up for direct deposit.
• Find out if you can get help doing your taxes.
• Find out about the different ways you can file your tax return.

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:

• Guaranteed income supplement (GIS)
• Canada child benefit (CCB)
• GST/HST credit
• Working income tax benefit (WITB)

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:

• MyBenefits CRA mobile app at Mobile apps – Canada Revenue Agency;
• My Account for Individuals.

Do you have to file a return?

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

• You have to pay tax for 2017.
• The CRA sent you a request to file a return.
• You and your spouse or common-law partner elected to split pension income for 2017.
• You received working income tax benefit advance payments in 2017.
• You disposed of capital property in 2017 or you realized a capital gain.

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

• you want to claim a refund.
• you want to claim the working income tax benefit for 2017.
• you want to receive the GST/HST credit or the Canada child benefit.

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:

• you filed your return late and you owe tax for 2017;
• you repeatedly failed to report income on your return; or
• you knowingly omitted or gave false information

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.

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 My Account 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:

• two weeks, if you file online; or
• eight weeks, if you file a paper return.

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 My Account 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.

For more information

Go to E-services for Individuals for more information and to use our services and tools.

• Log in or register for My Account, MyCRA or MyBenefitsCRA to use a wide range of services.
• Download our Forms and publications.
• Use our online calculators to find out your Canada child benefit or other amounts.

If you have specific questions about the equity tax credit, the labour-sponsored venture capital tax credit, or the volunteer firefighters and ground search and rescue tax credit, visit the Nova Scotia Department of Finance and Treasury Board, or contact:

Department of Finance and Treasury Board
Government of Nova Scotia
P.O. Box 187
Halifax NS  B3J 2N3

If you have questions about the Nova Scotia political contribution tax credit, contact:

Office of the Chief Electoral Officer
Government of Nova Scotia
P.O. Box 2246
Halifax NS  B3J 3C8 

Remember

• Flip your slip! Look on the back of your slips for information on where to report an amount.
• Sign and date your return.
• Attach to your return only the documents requested. Keep all other supporting documents.
• Send your tax return to the Canada Revenue Agency.

Nova Scotia benefits for individuals and families

Nova Scotia child benefit

The Nova Scotia child benefit (NSCB) is a non-taxable amount paid monthly to help low- and modest-income families with the cost of raising children under 18 years of age. Benefits are combined with the Canada child benefit into a single monthly payment.

You do not need to apply separately to receive NSCB payments. The Canada Revenue Agency (CRA) will use the information from your Canada child benefits application to determine your eligibility for the NSCB.

Nova Scotia affordable living tax credit

The Nova Scotia affordable living tax credit (NSALTC) is a non-taxable quarterly payment to make life more affordable for low- and modest-income individuals and families. This amount is combined with the federal GST/HST credit.

You do not need to apply for the GST/HST credit, including the NSALTC. When you file your income tax and benefit return, the CRA will determine your eligibility and tell you if you are entitled to receive credit payments.

File your return

To make sure your payments arrive on time, you (and your spouse or common-law partner) need to file a 2017 income tax and benefit return(s) by April 30, 2018. The information you give on your return(s) will determine how much you will get starting in July 2018.

These programs are fully funded by the Province of Nova Scotia. For more information, go to Province of Nova Scotia, or call the CRA at 1-800-387-1193. 

Completing your Nova Scotia form

You can download and print a copy of Form NS428, Nova Scotia Tax and Credits to calculate your Nova Scotia tax and credits. Attach a completed copy of Form NS428 to your return.

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.

Form NS428, Nova Scotia Tax and Credits

Complete Form NS428 if you were a resident of Nova Scotia 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 Nova Scotia, complete Form T2203, Provincial and Territorial Taxes for 2017 – Multiple Jurisdictions, instead of Form NS428.

You also have to complete Form NS428 if you were a non-resident of Canada in 2017 and you earned income from employment in Nova Scotia or received income from a business with a permanent establishment only in Nova Scotia.

Step 1 – Nova Scotia non-refundable tax credits

The eligibility criteria and rules for claiming most of the Nova Scotia non-refundable tax credits are the same as for the federal non-refundable tax credits. However, the value and calculation of most Nova Scotia 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 provincial amounts on lines 5804 to 5820, 5823, 5840, 5844, 5848, 5860, and 5864.

Line 5804 – Basic personal amount

Claim $8,481.

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 $58,435.

If your net income is:

• $30,828 or less, enter $4,141 on line 5808; or
• more than $30,828 but less than $58,435, complete the calculation for line 5808 on the Provincial Worksheet.

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 $9,329.

Complete the calculation on Form NS428, and enter the amount on line 5812.

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 $9,329.

Complete the calculation on Form NS428, and enter the amount on line 5816.

Line 5820 – Amount for infirm dependants age 18 or older

You can claim an amount up to a maximum of $2,798 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 of the following conditions.

The person must have been:

• your or your spouse’s or common-law partner’s parent, grandparent, brother, sister, aunt, uncle, niece, or nephew;
• born in 1999 or earlier and had an impairment in physical or mental functions;
• dependent on you, or on you and others, for support; and
• a resident of Canada at any time in the year. You cannot claim this amount for a person who was only visiting you.

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 $8,481.

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 Provincial 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 of your claim and the other person’s claim cannot exceed the maximum amount allowed for that dependant.

Line 5823 – Amount for young children

You can claim this amount if you were a resident of Nova Scotia at the end of the year and you had a dependent child who was less than six years of age.

You can claim $100 per month for each child, if all of the following conditions are met:

• the child was less than six years of age and living with you on the first day of the month;
• no one else claimed the amount for young children for the child for the month you are claiming;
• the child has not been claimed by you or anyone else as an eligible dependant on line 5816; and
• no one has received a special allowance under the Children's Special Allowances Act for the child for the month you are claiming.

If you had a spouse or common-law partner at the end of the year, only the person with the lower net income (including zero income) can claim this amount.

If you and your spouse or common-law partner have equal net incomes, you have to decide which one of you will claim this amount.

Complete the "Details of amount for young children" chart in Step 3 of Form NS428. Provide the details for each child you are claiming, including the number of months you are claiming for that child.

Enter the total number of months you are claiming for all children beside box 6372 of Form NS428.

Claim $100 for each month, and enter the total amount on line 5823. The maximum amount you can claim for 2017 is $1,200 for each dependent child.

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 $1,173, 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 $4,898 for each dependant.

Each dependant must have been one of the following:

• your or your spouse’s or common-law partner’s child or grandchild; or
• your or your spouse’s or common-law partner’s brother, sister, niece, nephew, aunt, uncle, parent, or grandparent who was resident in Canada. You cannot claim this amount for a person who was only visiting you.

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

• been 18 years of age or older when he or she lived with you;
• had a net income in 2017 (line 236 of his or her return, or the amount it would be if he or she filed a return) of less than $18,575; and
• been dependent on you because of an impairment in physical or mental functions, or if he or she is your or your spouse’s or common-law partner’s parent or grandparent, born in 1952 or earlier.

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 Provincial 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 older at the end of the year, enter $7,341 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 $3,449 in addition to the base amount of $7,341. Complete the calculation for line 5844 on the Provincial 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 Provincial 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 NS(S11), Provincial Tuition and Education Amounts.

Supporting documents 

If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your completed Schedule NS(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 provincial 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 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 provincial amount this person can claim, complete the "Transfer/Carryforward of unused amount" section of Schedule NS(S11), as well as the related form:

• T2202A, Tuition and Enrolment Certificate;
• TL11A, Tuition  and Enrolment Certificate – University Outside Canada;
• TL11B, Tuition and Enrolment Certificate – Flying School or Club;
• TL11C, Tuition and Enrolment Certificate – Commuter to the United States.

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

Complete the "Transfer/Carryforward of unused amount" section of Schedule NS(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 provincial amounts that each student has transferred to you as shown on his or her Form T2202A, TL11A, TL11B, or TL11C.

Supporting documents

If you are filing electronically 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 NS(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 the amount on line 326 of federal Schedule 1.

Complete Schedule NS(S2), Provincial 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. Your total expenses have to be more than either 3% of your net income (line 236 of your return) or $1,637, whichever is less.

Line 5872 – Allowable amount of medical expenses for other dependants

In addition to the medical expenses claimed on line 5868, you can 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 total expenses for each dependant have to be more than either 3% of that dependant's net income (line 236 of his or her return) or $1,637, whichever is less.

Complete the calculation for line 5872 on the Provincial 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 at lines 27 and 28 on Form NS428.

Step 2 – Nova Scotia tax on taxable income

Enter on line 31 your taxable income from line 260 of your return. Complete the appropriate column depending on the amount entered.

Step 3 – Nova Scotia tax

Line 40 – Nova Scotia 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 Nova Scotia 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 47 – Nova Scotia additional tax for minimum tax purposes

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

To do this, complete the calculation on line 47 of Form NS428. For more information on minimum tax, see the General Income Tax and Benefit Guide.

Line 49 – Provincial 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 provincial foreign tax credit.

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

Enter, on line 49 of Form NS428, the tax credit calculated on line 5 of Form T2036.

Supporting documents

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

Nova Scotia research and development tax credit recapture

If a partnership of which you are a member, or a trust of which you are a beneficiary, acquired property from a corporation in a non-arm's length transaction and, in 2017, converted the property to commercial use or disposed of it, you may have to include in your Nova Scotia tax payable all or part of the Nova Scotia research and development tax credit previously claimed by the corporation for the property.

For more information on the Nova Scotia research and development tax credit recapture, including instructions on how to calculate and report this amount, contact us.

Nova Scotia low-income tax reduction

You can claim this tax reduction if you were a resident of Nova Scotia on December 31, 2017, and any of the following conditions applied to you:

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

If you had a spouse or common-law partner on December 31, 2017, you and your spouse or common-law partner must decide who will claim this low-income tax reduction. Only one of you can make this claim for your family.

You cannot claim the tax reduction if on December 31, 2017, you were confined to a prison or a similar institution and had been there for a total of more than six months during 2017.

If you are preparing a return for a resident of Nova Scotia who died in 2017, the tax reduction can be claimed on the deceased person's final return. If the deceased person had a spouse or common-law partner, the tax reduction can be claimed on either the deceased person's final return or the return of the spouse or common-law partner.

Adjusted family income

When you calculate your adjusted family income (lines 51 to 56 of Form NS428), complete columns 1 and 2 using the information from your and your spouse's or common-law partner's returns for the year.

Line 58 – Basic reduction

Claim $300 for yourself.

Line 59 – Reduction for spouse or common-law partner

Claim $300 if you had a spouse or common-law partner on December 31, 2017. If your spouse or common-law partner died in 2017, you can claim this amount.

Line 60 – Reduction for an eligible dependant

Claim $300 if you claimed an amount for an eligible dependant on line 5816 of Form NS428. You cannot claim this amount if you have claimed an amount on line 59.

Line 62 – Reduction for dependent children born in 1999 or later

Enter beside box 6099 the number of dependent children you have who were born in 1999 or later.

Do not include a child for whom you claimed the reduction for an eligible dependant on line 60 of Form NS428.

Claim $165 for each of these dependants.

Only one person can claim the tax reduction for a child.

Who is a dependent child?

A dependent child is one who, on December 31, 2017, met all of the following conditions:

• was 18 years of age or younger;
• did not have a spouse or common-law partner;
• was not a parent; and
• either lived with you, or was claimed as a dependant only by you or your spouse or common-law partner.

Line 71 – Nova Scotia political contribution tax credit

You can claim a credit equal to 75% of the contributions you made in 2017 to recognized Nova Scotia political parties or to candidates seeking election in the Nova Scotia House of Assembly.

On line 71 of Form NS428, calculate and enter your credit to a maximum of $750.

Supporting documents

If you are filing electronically, 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 or political party.

Line 73 – Food bank tax credit for farmers

You can claim this credit if you meet all of the following conditions:

• you were a resident of Nova Scotia at the end of the year;
• you or your spouse or common-law partner was a farmer;
• you made a qualifying donation to an eligible food bank in the year; and
• you have claimed the qualifying donation on line 340 of your federal Schedule 9 and on line 29 of Form NS428 as a charitable donation or gift for the year.

A qualifying donation is a donation of one or more agricultural products produced in Nova Scotia and donated to an eligible food bank in Nova Scotia on or after January 1, 2017.

An eligible food bank is a registered charity under the Income Tax Act that distributes food to the public without charge in Nova Scotia and does so mainly to provide relief to the poor.

The amount of qualifying donations can be split between spouses or common-law partners; however, the total amount of qualifying donations that can be claimed by spouses or common-law partners cannot be more than the total of the qualifying donations made in the tax year.

If you are preparing a return for a person who died in 2017, you can claim this credit on the deceased person’s final return.

If you were bankrupt in 2017, claim your food bank tax credit for farmers on either the pre- or post-bankruptcy return you file for the tax year ending December 31, 2017, depending on when the qualifying donations were made. If qualifying donations are claimed on more than one return, the total amount of donations that can be claimed on all returns filed for the year cannot be more than the total qualifying donations made.

How to claim this amount
Enter beside box 6098 the amount of donations you have included on line 340 of your federal Schedule 9 that are qualifying donations for the food bank tax credit for farmers. Then enter 25% of this amount on line 73 of Form NS428.

Line 75 – Labour-sponsored venture capital tax credit

You can claim a credit equal to 20% of your investment in eligible shares you acquired in 2017 (that you did not claim on your 2016 return) or in the first 60 days of 2018.

If an RRSP for spouse or common-law partner became the first registered holder of the share, either the RRSP contributor or the annuitant may claim this credit for that share.

Enter on Form NS428 the cost of your shares shown on Form NSLSV, Nova Scotia Labour-Sponsored Venture Capital Tax Credit, issued by the relevant labour-sponsored venture capital corporation.

On line 75 of Form NS428, calculate and enter your credit to a maximum of $2,000.

Supporting documents

If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your Form NSLSV.

Line 77 – Equity tax credit

You can claim this credit for investments in eligible shares you acquired in 2017 (that you did not claim on your 2016 return) or in the first 60 days of 2018.

To claim the credit, complete Form T1285, Nova Scotia Equity Tax Credit.

Enter on line 77 of Form NS428 the tax credit calculated on line 6 of Form T1285.

Supporting documents 

If you are filing electronically, keep all your documents in case we ask to see them later.

If you are filing a paper return, attach your Form T1285 along with your NSETC-1 receipt, Nova Scotia Equity Tax Credit.

Line 79 – Age tax credit

You can claim this credit if you met all of the following conditions:

• you were a resident of Nova Scotia on December 31, 2017;
• you were 65 years of age or older on or before December 31, 2017; and
• your taxable income from line 260 of your return was less than $24,000.

If you qualify for this credit, enter $1,000 on line 79 of Form NS428.

If you are preparing a return for a resident of Nova Scotia who died in 2017, you can claim this credit on the deceased person’s final return if he or she was 65 years of age or older on the day of death and his or her taxable income was less than $24,000.

Line 81 – Nova Scotia volunteer firefighters and ground search and rescue tax credit

You can claim this credit if you meet all of the following conditions:

• you were a resident of Nova Scotia on December 31, 2017;
• you were a volunteer firefighter or a ground search and rescue volunteer for a minimum of six months during the period of January 1 to December 31, 2017;
• you did not receive salary, wages, or compensation, other than reasonable reimbursement or allowance for expenses; and
• for a volunteer firefighter, you were listed as a volunteer firefighter on the report filed by the fire chief of the volunteer fire department.

If you qualify for this credit, enter $500 on line 81 of Form NS428.

If you are preparing a return for a person who died in 2017, you can claim this credit on the deceased person's final return if he or she was a resident of Nova Scotia on the day of death and met all of the conditions.