As the tax filing season kicks off, Canadians across Atlantic provinces are keen to optimize their returns by leveraging available tax credits. Navigating the complex tax landscape can be a daunting task, but understanding the benefits specific to each province is crucial. With the tax deadline set for April 30th, residents of Atlantic Canada have unique opportunities to enhance their financial outcomes through various tax credits.
From Nova Scotia to Newfoundland and Labrador, provinces in Atlantic Canada offer tax credits tailored to different sectors of the community. Whether it’s credited for specific investments, education, or other qualifying expenses, individuals can strategically tap into these incentives to maximize their return on income earned. Stay informed about the specific credits available in your province of residence to ensure you’re making the most of the opportunities provided by the tax system.
Below are the tax credits and benefits for individuals in each Atlantic Province
The Nova Scotia Child Benefit (NSCB) is a monthly, tax-free financial support aimed at assisting low- and modest-income families in meeting the expenses associated with raising children. Running from July 2023 to June 2024, eligible families may receive $127.08 per month for each child under 18 under their care.
The benefit is integrated with the Canada Child Benefit (CCB), resulting in a consolidated monthly payment for recipients. Families with an adjusted family net income falling within the range of $26,000 to $34,000 may qualify for a partial benefit.
It’s noteworthy that this initiative is entirely funded by the Nova Scotia provincial government, emphasizing their commitment to supporting families in need.
The Nova Scotia Affordable Living Tax Credit (NSALTC) is a tax-free financial support initiative designed to enhance affordability for individuals and families with low and modest incomes. Geared towards mitigating the impact of increased Harmonized Sales Tax (HST), this credit provides additional income to eligible recipients.
Running from July 2023 to June 2024, the program offers a maximum annual credit of $255.00 for individuals or couples, with an additional $60.00 for each child. The credit amount undergoes a reduction of 5% for adjusted family net incomes exceeding $30,000.
Notably, this credit is integrated with quarterly payments of the federal GST/HST credit, presenting a comprehensive approach to financial support. Fully funded by the Nova Scotia provincial government, the NSALTC underscores its commitment to improving the quality of life.
The New Brunswick Child Tax Benefit (NBCTB) is a monthly, tax-free financial support provided to eligible families with children under 18 years old. Simultaneously, the New Brunswick Working Income Supplement (NBWIS) offers an extra benefit to qualifying families with earned income and children under 18. Both these benefits are integrated with the Canada Child Benefit (CCB), resulting in a consolidated monthly payment.
For each child, you may receive a basic NBCTB of $20.83 per month, with the amount decreasing for adjusted family net incomes exceeding $20,000. The NBWIS is an additional benefit of up to $20.83 per month per family, gradually implemented for earned incomes exceeding $3,750 and reaching its maximum at $10,000.
If your adjusted family net income falls within the range of $20,921 to $25,921, you may qualify for a partial NBWIS supplement. The NBCTB payment may also include the New Brunswick School Supplement (NBSS) paid annually in July. For the July 2023 NBSS payment, families with an adjusted net income of $20,000 or less in 2022 will receive $100 for each child born between January 1, 2006, and December 31, 2018.
It’s essential to note that this comprehensive program, including NBCTB, NBWIS, and NBSS, is fully funded by the Province of New Brunswick.
The New Brunswick Harmonized Sales Tax Credit (NBHSTC) is a tax-free financial assistance program designed to alleviate the impact of increased sales tax for households with low and modest incomes.
Running annually, this program offers a maximum amount of $300 for individuals, $300 for spouses or common-law partners, and $100 per child under 19 years of age (with a higher amount of $300 for the first child in a single-parent family). The credit undergoes a reduction of 2% of the adjusted family net income of over $35,000.
Notably, this credit is integrated with quarterly payments of the federal GST/HST credit, ensuring a more comprehensive approach to financial support. The entire program is fully funded by the Province of New Brunswick, emphasizing its commitment to assisting individuals and families with limited financial means.
The Newfoundland and Labrador Child Benefit (NLCB) is a tax-free monthly payment aimed at assisting low-income families in covering the expenses associated with raising children under 18. Additionally, the Early Childhood Nutrition Supplement (ECNS), formerly known as the Prenatal Infant Nutrition Supplement (PINS), provides an extra benefit for qualifying families. Both benefits are consolidated with the Canada Child Benefit (CCB), resulting in a single monthly payment.
For the period of July 2023 to December 2023, the entitlements are as follows:
- $37.25 per month for the first child
- $39.50 per month for the second child
- $42.41 per month for the third child
- $45.58 per month for each additional child
In alignment with the new poverty reduction plan, Newfoundland and Labrador has announced an increase in the NLCB, with the first augmented payment scheduled for March 20, 2024, including retroactive payments to January 2024.
For January 2024 to June 2024, the updated entitlements are:
- $149.00 per month for the first child
- $158.00 per month for the second child
- $169.66 per month for the third child
- $182.33 per month for each additional child
Participation in the benefit is contingent on adjusted family net income, with partial benefits available for those whose income exceeds $17,397.
Effective January 2024, the age eligibility for the ECNS expands to encompass children up to age 5, offering a benefit of $150 per month for each child under five, depending on adjusted family net income.
Crucially, this comprehensive program, covering NLCB and ECNS, is fully funded by the Newfoundland and Labrador provincial government.
The Newfoundland and Labrador Income Supplement is a tax-free financial aid provided to low-income individuals, families, and persons with disabilities who may be affected by additional provincial tax measures. Calculated according to family dynamics and adjusted family net income, the maximum annual payment amounts are as follows:
- $520 for a single individual
- $589 for individuals with a spouse or common-law partner
In addition to the individual or couple payments, there is an additional amount of $231 per child under 19 years of age. These amounts are integrated with quarterly federal GST/HST credit payments, ensuring a comprehensive approach to financial support.
Notably, the Newfoundland and Labrador provincial government fully funds this program, illustrating their commitment to assisting those facing economic challenges due to provincial tax measures.
The Newfoundland and Labrador Disability Amount (NLDA) is an additional financial support provided in conjunction with the Newfoundland and Labrador Income Supplement (NLIS). Specifically designed to assist individuals with disabilities who have low or modest incomes, eligibility for the NLDA for a quarter requires individuals to meet the following criteria:
- Eligibility for the federal GST/HST credit and the NLIS.
- Eligibility for the Disability Tax Credit (DTC).
The maximum annual payment amount for the NLDA is as follows:
- $231 if the individual is eligible for the Disability Tax Credit.
- An additional $231 if the individual’s spouse or common-law partner is also eligible for the Disability Tax Credit.
The Newfoundland and Labrador Seniors’ Benefit is a tax-free annual initiative offering financial assistance. Eligible recipients include:
- Single seniors aged 65 or older at any time during 2023.
- Married or common-law couples with at least one senior, provided their adjusted family net income is $29,402 or less.
For seniors with adjusted family net incomes between $29,402 and $41,787, a partial payment is applicable. The annual benefit is $1,516 and is combined with quarterly federal GST/HST credit payments for added financial support.
Crucially, this program is fully funded by the Newfoundland and Labrador provincial government.
The Prince Edward Island Sales Tax Credit is a tax-free financial support initiative designed to alleviate the impact of increased sales tax on households with low and modest incomes.
The program offers an annual credit of $110 for an individual and an additional $55 if applicable, for a spouse, common-law partner, or an eligible dependant. Additionally, there is a supplement amounting to 0.5% of adjusted family net income over $30,000, up to a maximum of $55. However, the total credit is reduced by 2% of adjusted family net income over $50,000.
This credit is fully funded by the Province of Prince Edward Island, reflecting their commitment to supporting residents facing financial challenges. Furthermore, this amount is combined with quarterly payments of the federal GST/HST credit, providing a comprehensive approach to financial relief for eligible households.
Conclusion: Optimizing tax returns not only benefits individuals but also contributes to the overall strength and growth of the economy. By capitalizing on available tax credits, residents in Atlantic Canada play a vital role in fostering economic development. As tax season progresses, staying abreast of regional credits is a wise strategy for every taxpayer aiming to make the most out of their financial planning.