Information for residents of Newfoundland and Labrador

5001-PC Rev. 18

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Table of contents

What's new for Newfoundland and Labrador for 2018?

The personal income levels used to calculate your Newfoundland and Labrador tax have changed.

The amounts for most provincial non-refundable tax credits and the Newfoundland and Labrador low-income tax reduction have changed. 

Newfoundland and Labrador benefits for individuals and families

Newfoundland and Labrador income supplement

This supplement is a non-taxable amount paid to help low-income individuals and families. The supplement may include the Newfoundland and Labrador disability amount paid to help low- and modest-income individuals with disabilities. These amounts are combined with the quarterly federal GST/HST credit payment.

You do not need to apply for the GST/HST credit or the Newfoundland and Labrador income supplement. The Canada Revenue Agency (CRA) will use the information from your return to determine your eligibility and tell you if you are entitled to the supplement.

Newfoundland and Labrador seniors' benefit

This benefit is a non-taxable amount based on the family net income for single seniors (65 years of age or older at any time in 2019) or married or common-law couples including at least one senior. This benefit is combined with the quarterly federal GST/HST credit payment.

You do not need to apply for the Newfoundland and Labrador seniors’ benefit. The CRA will use the information from your return to determine your eligibility and tell you if you are entitled to the benefit.

Newfoundland and Labrador child benefit (and mother baby nutrition supplement)

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 18 years of age. The mother baby nutrition supplement (MBNS) is an additional benefit paid to qualifying families who have children under one year of age. These benefits are combined with the Canada child benefit into one monthly payment.

You do not need to apply for the NLCB or the MBNS. The CRA will use the information from your Canada child benefits application to determine your eligibility and tell you if you are entitled to the benefit.

File your return

To make sure you get your payments on time, you (and your spouse or common-law partner) need to file your 2018 income tax and benefit return(s) by April 30, 2019. The CRA will use the information from your return(s) to calculate the payments you are entitled to get from these programs.

The Newfoundland and Labrador income supplement, Newfoundland and Labrador seniors’ benefit and NLCB are fully funded by the Province of Newfoundland and Labrador. For more information about these programs, go to Province of Newfoundland and Labrador or call the CRA at 1-800-387-1193.

Completing your Newfoundland and Labrador form

You can download and print a copy of Form NL428, Newfoundland and Labrador Tax and Credits, to calculate your Newfoundland and Labrador tax and credits. Attach a completed copy of Form NL428 to your return.

Definitions

Spouse refers to a person to whom you are legally married. 

Common-law partner refers to a person who is not your spouse but with whom you are in a conjugal relationship, and at least one of the following conditions applies:

  • This person has been living with you in a conjugal relationship for at least 12 continuous months (including any period of time where you were separated for less than 90 days because of a breakdown in the relationship).
  • This person is the parent of your child by birth or adoption.
  • This person has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on them for support.

End of the year means any of the three following dates:

  • December 31, 2018
  • the date you left Canada if you emigrated in 2018
  • the date of death for a person who died in 2018

Form NL428, Newfoundland and Labrador Tax and Credits

Complete Form NL428 if you were a resident of Newfoundland and Labrador at the end of the year.

If you were a non-resident of Canada in 2018, complete Form NL428 if one of the following applies:

  • You earned income from employment in Newfoundland and Labrador.
  • You received income from a business with a permanent establishment only in Newfoundland and Labrador.

Complete Form T2203, Provincial and Territorial Taxes for 2018 – Multiple Jurisdictions, instead of Form NL428 if each of the following applies:

  • You had income from a business (including income you received as a limited or non-active partner).
  • The business has a permanent establishment outside Newfoundland and Labrador.

Part A – Newfoundland and Labrador non-refundable tax credits

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

Newcomers to Canada and emigrants

If you reduced your claim for the amounts on lines 300 to 307, 316, 318, 324, and 326 of your federal Schedule 1, you also need to reduce the corresponding provincial amounts on lines 5804 to 5820, 5840, 5844, 5848, 5860, and 5864 in the same manner.

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 their return, or the amount that it would be if they filed a return) is less than $8,312.

Note

Enter your marital status and your spouse’s or common-law partner’s information (including their net income, even if it is zero) in the “Identification and other information” section 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 their return or the amount that it would be if they filed a return) is less than $8,312.

Note

If you were a single parent on December 31, 2018, and you choose to include all the universal child care benefit (UCCB) lump-sum payment you received in 2018 in your dependant's income, include this amount when calculating their net income.

Line 5820 – Amount for infirm dependants age 18 or older

You can claim up to $2,936 for each of your (or your spouse’s or common-law partner’s) dependent children or grandchildren only if they had an impairment in physical or mental functions and were born in 2000 or earlier.

You can also claim an amount for more than one person if each one meets all of the following conditions:

  • They were your (or your spouse’s or common-law partner’s) parent, grandparent, brother, sister, aunt, uncle, niece, or nephew.
  • They were 18 years of age or older.
  • They were dependent on you (or on you and others) because of an impairment in physical or mental functions.
  • They were a resident of Canada at any time in the year.
Notes

You cannot claim this amount for a person who was only visiting you.

A parent includes someone you were completely dependent upon 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 upon you for support and whom you have custody and control of.

You can claim an amount only if the dependant’s net income (line 236 of their return, or the amount it would be if they filed a return) is less than $9,247.

If you had to make support payments for a child, you cannot claim an amount on line 5820 for that child unless each of the following conditions apply:

  • You were separated from your spouse or common-law partner for only part of 2018 because of a breakdown in your relationship.
  • You do not claim any support amounts paid to your spouse or common-law partner on line 220 of your return.

If each of these conditions is met, you can claim either an amount on line 5820 or an amount on line 220 of your return, whichever is better for you.

How to claim this amount

Complete the calculation for line 5820 using Worksheet NL428. If you are claiming this amount for more than one dependant, enter the total amount on line 5820.

Note

The CRA may ask for a signed statement from a medical practitioner showing the type of impairment, when it began, how long it is expected to last, and that the person is, and will continue to be, dependent on others because of this impairment in physical or mental functions

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 be more than the maximum amount allowed for that dependant.

Line 5830 – Volunteer firefighters' amount

You can claim $3,000 for the volunteer firefighters' amount if you meet the following conditions:

  • you were a volunteer firefighter during the year
  • you completed at least 200 hours of eligible volunteer firefighting services in the year

Eligible volunteer firefighting services include:

  • responding to and being on call for firefighting and related emergency calls as a volunteer firefighter
  • attending meetings held by the fire department
  • participating in required training related to preventing or suppressing fires

Supporting documents
Do not send any supporting documents when you file your tax return. Keep them in case we ask to see them later. However, we may ask you to provide certification from the fire department to confirm the number of hours of eligible volunteer firefighting services you performed.

Line 5833 – Adoption expenses

You can claim this amount if the rules are met for claiming the amount on line 313 of federal Schedule 1.

You can claim up to $12,479 of eligible expenses for each child.

Two adoptive parents can split the amount if the total combined claim for eligible expenses for each child is not more than the amount before the split.

Note

Only residents of Newfoundland and Labrador are eligible for this amount. If you are not a resident of Newfoundland and Labrador, you cannot claim this non-refundable tax credit when calculating your Newfoundland and Labrador tax even if you may have received income from a source in Newfoundland and Labrador in 2018.

Line 5836 – Pension income amount

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.

Note

Only residents of Newfoundland and Labrador are eligible for this amount. If you are not a resident of Newfoundland and Labrador, you cannot claim this non-refundable tax credit when calculating your Newfoundland and Labrador tax even if you may have received income from a source in Newfoundland and Labrador in 2018.

Line 5840 – Caregiver amount

If, at any time in 2018, 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 up to $2,937 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
  • your (or your spouse’s or common-law partner’s) brother, sister, niece, nephew, aunt, uncle, parent, or grandparent who was resident in Canada

Note

You cannot claim this amount for a person who was only visiting you. 

Also, each dependant must meet all of the following conditions:

  • They were 18 years of age or older when they lived with you.
  • They had a net income in 2018 (line 236 of their return, or the amount it would be if they filed a return) of less than $17,288.
  • They were dependent on you because of an impairment in physical or mental functions or they are your (or your spouse’s or common-law partner’s) parent or grandparent born in 1953 or earlier.

If you had to make support payments for a child, you cannot claim an amount on line 5840 for that child. However, 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 each of the following applies:

  • You were separated from your spouse or common-law partner for only part of 2018 because of a breakdown in your relationship.
  • You do not claim any support amounts paid to your spouse or common-law partner on line 220 of your return.

If each of these conditions is met, you can claim either an amount on line 5840 or an amount on line 220 of your return, whichever is better for you.

How to claim this amount

Complete the calculation for line 5840 using Worksheet NL428. If you are claiming this amount for more than one dependant, enter the total amount on line 5840.

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 $6,240 on line 5844.

If you were under 18 years of age at the end of the year, complete the calculation for line 5844 using Worksheet NL428.

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.

Note

If you and your dependant were not residents of the same province or territory at the end of the year, special rules may apply. Contact the CRA to find out how much you can claim.

Line 5856 – Your tuition and education amounts

Complete Schedule NL(S11), Provincial Tuition and Education Amounts.

Transferring amounts

If you do not need to use all of your 2018 tuition and education amounts to reduce your provincial income tax to zero, you can transfer all or some of the unused part to your spouse or common-law partner (who would claim it on line 5864), or your parent or grandparent, 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.

The student must complete the “Transfer or carryforward of unused amount” section of Schedule NL(S11) to transfer an amount. The student must also complete any of the following applicable forms to designate who can claim the transferred amount and to specify the provincial amount this person can claim:

The transferred amount may be different than 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 NL(S11).

Carrying forward amounts

Complete the "Transfer or carryforward of unused amount" section of Schedule NL(S11) to calculate the amount you can carry forward to a future year. This amount is the part of your tuition and education amount that you do not need to use for the year and are not transferring to your spouse or common-law partner, your parent or grandparent or your spouse’s or common-law partner’s parent or grandparent.

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 NL(S11), but do not send your other documents. Keep all your documents in case we ask to see them later.

Line 5860 – Tuition and education amounts transferred from a child

The student may be able to transfer all or part of their unused tuition and education amounts for 2018 to their parent or grandparent or their spouse’s or common-law partner’s parent or grandparent.

The maximum amount each student can transfer is $5,000 minus the amount they use, even if there is an unclaimed part.

How to claim this amount

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

Notes

The student must have entered this amount on line 20 of their Schedule NL(S11). They may have chosen to transfer an amount that is less than the available provincial 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 provinces or territories on December 31, 2018, special rules may apply. Contact the CRA to find out how much you can claim on line 5860.

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.

Note

The student must attach Schedule NL(S11) to their paper return.

Line 5868 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2001 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 2018, and must be expenses that were not claimed for 2017.

The total expenses need to be more than 3% of your net income (line 236 of your return) or $2,014, whichever is less.

Note

If the total medical expenses claimed are more than $2,014 but less than $2,302, enter the amount on line 5868 and line 330 of your federal Schedule 1.

Line 5872 – Allowable amount of medical expenses for other dependants

You can claim medical expenses for other dependants in addition to the medical expenses claimed on line 5868.

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 2018, and must be expenses that were not claimed for 2017.

The total expenses for each dependant need to be more than either 3% of that dependant’s net income (line 236 of their return) or $2,014, whichever is less.

Part C – Newfoundland and Labrador tax

Line 42 – Newfoundland and Labrador tax on split income

If you need to pay federal tax on split income on line 424 of your federal Schedule 1, complete Part 3 of Form T1206, Tax on Split Income, to calculate the Newfoundland and Labrador tax that applies to this income and enter the amount on line 428 of your return.

For more information on tax on split income, see the Federal Income Tax and Benefit Guide.

Line 49 – Newfoundland and Labrador additional tax for minimum tax purposes

If you need to pay federal minimum tax as calculated on Form T691, Alternative Minimum Tax, complete the calculation on line 49 of Form NL428 to determine your Newfoundland and Labrador additional tax for minimum tax purposes.

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

Line 51 – 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 able to claim a provincial foreign tax credit.

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

Enter, on line 51 of Form NL428, 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.

Lines 53 and 54 – Newfoundland and Labrador political contribution tax credit

You can claim a credit for the contributions you made in 2018 to registered Newfoundland and Labrador political parties or district associations or to registered Newfoundland and Labrador independent political candidates during an election period.

How to claim this amount

Enter your total contributions on line 53 of Form NL428 and calculate the amount to enter on line 54 as follows.

  • For contributions of $1,150 or less, complete the calculation for line 54 using Worksheet NL428.
  • For contributions of more than $1,150, enter $500 on line 54 of Form NL428.

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

If you are filing a paper return, attach an official receipt (signed by an official of the registered political party or constituency association, or by the non-affiliated candidate’s agent) for each contribution.

Line 56 – Direct equity tax credit

You can claim this credit for investments in eligible shares you acquired in 2018 (that you did not claim on your 2017 return) or in the first 60 days of 2019.

To claim the credit, complete Form T1272, Newfoundland and Labrador Direct Equity Tax Credit.

Enter, on line 56 of Form NL428, the tax credit calculated on line 6 of Form T1272.

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 T1272 and your NL DETC-1 receipts.

Unused direct equity tax credit

You can carry forward your unused Newfoundland and Labrador direct equity tax credits for seven years or carry them back three years.

Any unused direct equity tax credit is shown on your most recent notice of assessment or reassessment.

You may not need all of your credit to reduce your 2018 provincial income tax to zero. Use Form T1272 to calculate any unused credit available to carry back to previous years or carry forward to a future year.

Line 58 – Resort property investment tax credit

You can claim this credit if you invested in a registered resort development property in 2018 and you were at least 19 years of age when you made the investment.

To claim the credit, complete Form T1297, Newfoundland and Labrador Resort Property Investment Tax Credit (Individuals).

Enter, on line 58 of Form NL428, the tax credit calculated on line 6 of Form T1297.

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 T1297 and your official NL RPITC receipts.

Unused resort property investment tax credit

You can carry forward your unused resort property investment tax credits for seven years or carry them back three years.

Any unused resort property investment tax credit is shown on your most recent notice of assessment or reassessment.

You may not need all of your credit to reduce your 2018 provincial income tax to zero. Use Form T1297 to calculate any unused credit available to carry back to previous years or carry forward to a future year.

Line 60 – Venture capital tax credit

You can claim a credit for investments you made in a qualifying venture capital fund in 2018 (that you did not claim on your 2017 return) or in the first 60 days of 2019.

Enter, on line 60 of Form NL428, the credit shown on the Certificate(s) NL VCTC. The lifetime maximum you can claim is $75,000.

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 Certificate(s) NL VCTC.

Unused venture capital tax credit

You can carry forward your unused venture capital tax credits for seven years or carry them back three years.

To claim an unused amount shown on your notice of assessment or reassessment, enter the amount on line 61 of your Form NL428.

To claim a carry-back amount, you must ask the CRA to adjust  your previous-year return. For more information, see How to change a return.

Part D – Newfoundland and Labrador low-income tax reduction

You can claim the Newfoundland and Labrador low-income tax reduction if you were a resident of Newfoundland and Labrador on December 31, 2018.

If you had a spouse or common-law partner on December 31, 2018, you and your spouse or common-law partner need to decide who will claim the low-income tax reduction. The other spouse or common-law partner can claim any unused amount on their Form NL428.

If you are preparing a return for a resident of Newfoundland and Labrador who died in 2018, you can claim the tax reduction on their final return. If the deceased person had a spouse or common-law partner, you can claim the tax reduction on either the deceased person’s final return or their spouse’s or common-law partner’s return.

Line 65 – Unused low-income tax reduction from your spouse or common-law partner

If you had a spouse or common-law partner on December 31, 2018, and they did not need all of the low-income tax reduction to reduce their Newfoundland and Labrador tax to zero, you can claim their unused amount (from their Form NL428) on line 65 of your Form NL428.

Adjusted family income for the calculation of the Newfoundland and Labrador low-income tax reduction

To calculate your adjusted family income, complete columns 1 and 2 (lines 67 to 72 on Form NL428) using the information from your and your spouse’s or common-law partner’s returns for the year.

Note

Enter your marital status and your spouse’s or common-law partner’s information (including their net income, even if it is zero) in the “Identification and other information” section on page 1 of your return.

Line 75 – Reduction for your spouse or common-law partner

Claim $465 if you had a spouse or common-law partner on December 31, 2018. If your spouse or common-law partner died in 2018, you can claim this amount.

Line 76 – Reduction for an eligible dependant

Claim $465 if you claimed the amount for an eligible dependant on line 5816 of Form NL428 and you did not claim an amount on line 75.

Unused low-income tax reduction that can be claimed by your spouse or common-law partner

If you had a spouse or common-law partner on December 31, 2018, they can claim on their Form NL428 any amount of the low-income tax reduction that you do not need to reduce your Newfoundland and Labrador tax to zero.

Complete the calculation at lines 87 to 89 on your Form NL428 to determine the unused amount that your spouse or common-law partner can claim on line 65 of their Form NL428.

Part E – Temporary Newfoundland and Labrador deficit reduction levy

If you were a resident of Newfoundland and Labrador at the end of the year and your taxable income (line 260 of your return) is more than $50,000, you need to pay the temporary Newfoundland and Labrador deficit reduction levy. Complete the chart on Form NL428 to calculate how much you need to pay.

The levy is part of your Newfoundland and Labrador income tax and is included in your total income tax payable for the year.

Notes

If you are preparing a return for a resident of Newfoundland and Labrador who died in 2018, the levy is payable on their final return if their taxable income (line 260 of their return) is more than $50,000.

If you were bankrupt at any time in 2018, you have to pay the levy if your total taxable income for the year from all returns (pre-bankruptcy, in-bankruptcy, and post-bankruptcy from January 1, 2018 to December 31, 2018) is more than $50,000.

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