5004-PC Information for Residents of New Brunswick

What’s new for New Brunswick for 2018?

The personal income levels used to calculate your New Brunswick tax have changed. The amounts for most provincial non-refundable tax credits and the New Brunswick low-income tax reduction have also changed.

New Brunswick residents may be eligible to claim the new federal refundable credit for the climate action incentive. For more information, see Schedule 14, Climate Action Incentive.

New Brunswick benefits for individuals and families

New Brunswick harmonized sales tax credit

The New Brunswick harmonized sales tax credit (NBHSTC) is a non-taxable amount paid to help offset the increase in the harmonized sales tax for households with low and modest incomes. This amount is combined with the quarterly federal GST/HST credit payments.

You do not need to apply for the GST/HST credit or the New Brunswick harmonized sales tax credit. The Canada Revenue Agency (CRA) will use the information from your return to determine your eligibility and tell you if you are entitled to receive the credits.

New Brunswick child tax benefit

The New Brunswick child tax benefit (NBCTB) is a non-taxable amount paid monthly to qualifying families with children under 18 years of age. The New Brunswick working income supplement is an additional amount paid to qualifying families with earned income who have children under 18 years of age. These benefits are combined with the Canada child benefit into one monthly payment.

The New Brunswick school supplement program is paid to help low-income families with the cost of back-to-school supplies for their children. This once-a-year payment is included with the July NBCTB payment.

You do not need to apply for these programs. 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 benefits.

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 NBHSTC and the NBCTB are fully funded by the Province of New Brunswick. For more information about these programs, go to Province of New Brunswick or call the CRA at 1-800-387-1193.

Completing your New Brunswick form

You can download and print a copy of Form NB428, New Brunswick Tax and Credits, which you need to calculate your New Brunswick tax and credits. Complete a copy of Form NB428 and attach it 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 NB428, New Brunswick Tax and Credits

Complete Form NB428 if you were a resident of New Brunswick at the end of the year.

If you were a non-resident of Canada in 2018, complete Form NB428 if one of the following applies:

• You earned income from employment in New Brunswick.
• You received income from a business with a permanent establishment only in New Brunswick.

Complete Form T2203, Provincial and Territorial Taxes for 2018 – Multiple Jurisdictions, instead of Form NB428 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 New Brunswick.

Part A – New Brunswick non-refundable tax credits

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

Newcomers to Canada and emigrants

If you reduced your claim for any of 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, 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 $9,381.

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 $9,381.

Line 5820 – Amount for infirm dependants age 18 or older

You can claim up to $4,743 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 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 your 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.

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 $11,473.

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 NB428. If you are claiming this amount for more than one dependant, enter the total amount on line 5820.

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 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.

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 $4,743 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 a resident in Canada

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 $20,941.
• 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 NB428. 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 $8,131 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 NB428.

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.

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 $2,273, whichever is less.

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 $2,273, whichever is less.

Part C – New Brunswick tax

Line 38 – New Brunswick 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 New Brunswick 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 46 – New Brunswick additional tax for minimum tax purposes

If you need to pay federal minimum tax as calculated on Form T691, Alternative Minimum Tax, you need to complete the calculation on line 46 of Form NB428 to determine your New Brunswick additional tax for minimum tax purposes.

For more information about minimum tax, see the Federal income tax and benefit guide.

Line 48 – 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 48 of Form NB428, 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.

Part D – New Brunswick low-income tax reduction

You can claim the New Brunswick low-income tax reduction if you were a resident of New Brunswick 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 for your family. The other spouse or common-law partner can claim any unused amount on their Form NB428.

If you are preparing a return for a resident of New Brunswick 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, the tax reduction can be claimed on either the deceased person’s final return or their spouse’s or common-law partner’s return.

Line 50 – 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 to use all of the low-income tax reduction to reduce their New Brunswick tax to zero, you can claim their unused amount (from their Form NB428) on line 50 of your Form NB428.

Adjusted family income for the calculation of the New Brunswick low-income tax reduction

To calculate your adjusted family income, complete columns 1 and 2 (lines 52 to 57 of Form NB428) using the information from your and your spouse’s or common-law partner’s returns for the year.

Line 60 – Reduction for your spouse or common-law partner

Claim $651 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 61 – Reduction for an eligible dependant

Claim $651 if you claimed the amount for an eligible dependant on line 305 of your federal Schedule 1 and you did notclaim an amount on line 60.

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 NB428 any amount of the low-income tax reduction that you do not need to use to reduce your New Brunswick tax to zero.

Complete the calculation at lines 77 to 79 of your Form NB428 to determine the unused amount that your spouse or common-law partner can claim on line 50 of their Form NB428.

Part E – New Brunswick tax credits

Lines 70 and 71 – Political contribution tax credit

You can deduct part of the contributions you made in 2018 to political parties, district associations, or independent candidates registered in New Brunswick.

How to claim this amount

Enter your total contributions on line 70 of Form NB428 and calculate the amount to enter on line 71 as follows:

• For contributions of $1,075 or less, complete the calculation for line 71 using Worksheet NB428.
• For contributions of more than $1,075, enter $500 on line 71 of Form NB428.

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 an official receipt (signed by an official representative of the political party, district association, or independent candidate) for each contribution.

Line 73 – Labour-sponsored venture capital fund tax credit

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

If an RRSP for your 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 line 73 of Form NB428, the credit shown on the NB-LSVC-1 certificate(s) issued by the relevant labour-sponsored venture capital corporation. You can claim up to $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 NB-LSVC-1 certificate(s).

Line 75 – Small business investor tax credit

To claim the credit, complete Form T1258, New Brunswick Small Business Investor Tax Credit.

Enter, on line 75 of Form NB428, the tax credit calculated on line 6 of Form T1258.

Unused small business investor tax credits

You can carry forward unused small business investor tax credits for seven years or carry them back for three years.

You may not need to use all of your credit to reduce your 2018 provincial income tax to zero. Use Form T1258 to calculate any unused credit available to carry back to previous years or carry forward to a future year.

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 T1258 and the NB-SBITC-1 certificate(s).

New Brunswick seniors’ home renovation tax credit

You may be eligible for this credit if you meet all of the following conditions at the end of the year:

• You were a resident of New Brunswick.
• You were a senior (65 years of age or older) or you were living with or expecting to live with a family member who is a senior.
• You, or someone on your behalf, paid or incurred eligible expenses in 2018 for improvements to your principal residence or the land on which your principal residence is situated.

You can claim $10,000 or the amount of eligible expenses that you, or someone on your behalf, paid or incurred for your principal residence, whichever is less. If you occupied more than one principal residence at different times in 2018, you can claim the eligible expenses you paid or incurred for one or more of those residences, up to $10,000.

You must reduce your eligible expenses by the amount of any government assistance (other than tax credits) you received or expect to receive that is related to the eligible expenses.

The combined amount that you and your spouse or common-law partner can claim cannot be more than $10,000. However, if, on December 31, 2018, you and your spouse or common-law partner occupied separate principal residences for medical reasons or because of a breakdown in your marriage or common-law relationship for a period of 90 days or more, each spouse or common-law partner can claim up to $10,000 of eligible expenses. If you occupied separate principal residences for medical reasons, enter your spouse’s or common-law partner’s address under “Involuntary separation” on Schedule NB(S12).

If you shared a principal residence with other people, one of you can claim the entire amount of eligible expenses or each person can claim part of the expenses. The combined amount that can be claimed by everyone living in the residence is $10,000 or the amount of eligible expenses paid, whichever is less.

If someone not living with you or not related to you paid for the qualifying home renovation to your principal residence, you can still claim the credit. You should obtain and keep the supporting documents.

Definitions

A family member includes a parent, step-parent, grandparent, in-law, sibling, spouse, common-law partner, aunt, uncle, great-aunt, great-uncle, child, step-child, grandchild, niece, and nephew.

If you are a senior, a principal residence, for this credit, is a residence in New Brunswick that you occupy or expect to occupy by the end of 2020.

If you are not a senior, a principal residence, for this credit, is a residence in New Brunswick that you occupy or expect to occupy by the end of 2020 with a family member who is a senior.

Eligible expenses are expenditures for improvements to the principal residence (or to the land the principal residence is on) that do one of the following:

• allow a senior to gain access to the home or the land or to be more mobile or functional within the home or on the land
• reduce the risk of harm to a senior within the home or on the land or in gaining access to the home or the land

The improvements would normally be done by or for a person who has an impairment to allow them to be mobile or functional within the home or on the land.

The improvements must be of an enduring nature and be integral to the home or land.

Eligible expenses

Some examples of eligible expenses include:

• certain renovations to permit a first-floor occupancy or secondary suite for a senior
• grab bars and related reinforcements around the toilet, bathtub, and shower
• handrails in corridors
• wheelchair ramps, stair/wheelchair lifts, and elevators
• walk-in bathtubs
• wheel-in showers
• comfort height toilets
• widening of passage doors
• lowering of existing counters/cupboards
• installation of adjustable counters/cupboards
• light switches and electrical outlets placed in accessible locations
• door locks that are easy to operate
• lever handles on doors and taps, instead of knobs
• pull-out shelves under the counter to enable work from a seated position
• non-slip flooring
• a hand-held shower on an adjustable rod or high-low mounting brackets
• additional light fixtures throughout the home and at exterior entrances
• swing clear hinges on doors to widen doorways
• creation of knee space under the basin to enable use from a seated position (and insulation of any hot-water pipes)
• relocation of tap to front or side for easier access
• hands-free taps
• motion-activated lighting
• touch-and-release drawers and cupboards

Expenses that are not eligible

Expenses are not eligible if their main purpose is to increase the value of the home.

Annual, recurring, or routine repair, maintenance, or service expenses are not eligible. These include:

• general maintenance – such as plumbing or electrical repairs
• repairs to a roof
• aesthetic enhancements such as landscaping or redecorating
• installation of new windows
• installation of heating or air conditioning systems
• replacement of insulation

Devices are not eligible. These include:

• equipment for home medical monitoring
• equipment for home security (anti-burglary)
• wheelchairs
• walkers
• vehicles adapted for people with mobility limitations
• household appliances
• fire extinguishers, smoke alarms, and carbon monoxide detectors

Services are not eligible. These include:

• security or medical monitoring services
• home care services
• housekeeping services
• outdoor maintenance and gardening services

Are you filing for a deceased person?

You can claim the New Brunswick seniors’ home renovation tax credit on a deceased person’s final return if one of the following applies:

• The deceased person was a senior or would have turned 65 years of age by December 31, 2018, and is otherwise eligible.
• The deceased person was a family member of a senior or of a person who would have turned 65 years of age by December 31, 2018, and is otherwise eligible.

If you lived with, or expected by the end of 2020 to live with, a family member who, right before death, was a senior or who would have turned 65 years of age by December 31, 2018, and you are otherwise eligible, you can claim this credit on your return.

Were you bankrupt in 2018?

The New Brunswick seniors’ home renovation tax credit can be claimed on your pre- or post-bankruptcy return depending on when the eligible expenses were paid or became payable. If eligible expenses are claimed on more than one return, the total amount of expenses that can be claimed on all returns filed for the year cannot be more than $10,000 or the amount of eligible expenses paid, whichever is less.

How to claim this amount

Complete Schedule NB(S12). Enter the amount from line 7 on line 479 of your return.

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 NB(S12) but do not send your other documents. Keep all your documents in case we ask to see them later.

Link to Source:https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package/new-brunswick/5004-pc/information-residents-new-brunswick.html