ARCHIVED - Information for Residents of Newfoundland and Labrador

5001-PC

Table of Contents

• What's new for 2003?
• Newfoundland and Labrador programs for low-income individuals and families
  • Newfoundland Harmonized Sales Tax Credit (NHSTC)
  • Newfoundland and Labrador Seniors' Benefit
  • Newfoundland and Labrador Child Benefit
• If you have questions…

All the information you need to calculate your Newfoundland and Labrador tax and credits is included on the following pages. You will find two copies of Form NL428, Newfoundland and Labrador Tax and Credits , in this book. Attach a completed copy of Form NL428 to your return.

What's new for 2003?

The disability amount has been increased to $5,000, and there is a new disability supplement of $2,353 for persons under 18 years of age.

There is a new non-refundable tax credit that applies to the principal portion of payments on Newfoundland and Labrador student loans. A larger credit is available for single parents with dependents children and persons with disabilities.

The calculation of provincial additional tax for minimum tax purposes is now completed on Form NL428. Form T1219, Provincial and Territorial Alternative Minimum Tax, has been eliminated.

Form NL428, Newfoundland and Labrador Tax and Credits , reflects these changes.

Newfoundland and Labrador programs for low-income individuals and families

Newfoundland Harmonized Sales Tax Credit (NHSTC)

The NHSTC is a non-taxable payment to help people with low incomes who may be affected by the harmonized sales tax (HST). Under the NHSTC, individuals or families with net income of $15,000 or less get an annual amount of $40 per adult and $60 for each child under 19. This amount is reduced if family net income is more than $15,000.

To get these payments, you (or your spouse or common-law partner) should apply for the GST/HST credit on page 1 of your tax return. Benefits will be combined with the October payment of the federal GST/HST credit.

Newfoundland and Labrador Seniors' Benefit

The Newfoundland and Labrador Seniors' Benefit (NLSB) is a non-taxable annual payment of $350 for individuals 65 or older with family net income of $14,000 or less. Qualifying families with family net income between $14,000 and $20,000 will get a partial benefit.

To get these payments, you (or your spouse or common-law partner) should apply for the GST/HST credit on page 1 of your tax return. Benefits will be combined with the October payment of the federal GST/HST credit.

Newfoundland and Labrador Child Benefit

The Newfoundland and Labrador Child Benefit (NLCB) is a non-taxable amount paid monthly to help low-income families with the cost of raising children under age 18. The Mother Baby Nutrition Supplement (MBNS) is an additional benefit for families who have children under the age of one. Benefits are combined with the Canada Child Tax Benefit (CCTB) into a single monthly payment.

Under the NLCB, you may be entitled to a benefit of $18 per month for the first child, $26 per month for the second child, $28 per month for the third child, and $30 per month for each additional child. Qualifying families with net income between $17,397 and $22,397 will get a partial benefit.

Under the MBNS, you may be entitled to a benefit of $45 per month for each child under the age of one if your family net income is under $22,397.

There is no need to apply separately to get the NLCB or MBNS. We will use the information from your CCTB application to determine your eligibility for the NLCB and MBNS. For more information about these programs, call 1-800-387-1193.

File your tax return - You (and your spouse or common-law partner) should file your 2003 tax return(s) as soon as possible. We will automatically calculate the amount of any payments you are entitled to get under all three of these programs based on information you give on your return(s).

These programs are fully funded by the Province of Newfoundland and Labrador.

If you have questions…

If you have questions about Newfoundland and Labrador tax and credits, call the Canada Customs and Revenue Agency (CCRA) at 1-800-959-8281. To request forms call 1-800-959-2221.

The address of your tax services office and other telephone numbers are listed in the government section of your telephone book. Information is also available at www.ccra.gc.ca/tso on the CCRA's Web site.