ARCHIVED - 5003-N Completing Your Nova Scotia Forms

Table of Contents

• Form NS428, Nova Scotia Tax
  • Step 3 - Nova Scotia tax
  • Step 4 - Nova Scotia low income tax reduction
• Form NS479, Nova Scotia Credits
  • Political contribution tax credit
  • Labour-sponsored venture capital tax credit
  • Equity tax credit
  • Nova Scotia home ownership savings plan (NSHOSP) tax credit
  • Table of NSHOSP tax credit rates

The following information will help you complete Form NS428, Nova Scotia Tax, and Form NS479, Nova Scotia Credits. It will also help you determine whether you are eligible to claim Nova Scotia credits.

The term spouse used on these forms is defined on page 11 of the General Income Tax and Benefit Guide.

Form NS428, Nova Scotia Tax

Complete Form NS428 if you were a resident of Nova Scotia at the end of the year. The term end of the year means December 31, 2000, the date you left Canada if you emigrated in 2000, or the date of death for a person who died in 2000.

You also have to complete Form NS428 if you were a non-resident of Canada in 2000 and you earned income from employment in Nova Scotia, or received income from a business with a permanent establishment in Nova Scotia.

If you had income from a business with a permanent establishment outside Nova Scotia, complete Form T2203, Provincial and Territorial Taxes for 2000 - Multiple Jurisdictions, before you complete Form NS428.

Step 3 - Nova Scotia tax

Before you complete Step 3, be sure to complete Step 1 and Step 2 as you will need this information to calculate your provincial tax in Step 3.

Line 14 - Nova Scotia tax on split income

Certain income of a child who was under 18 on December 31, 2000, is subject to a special tax. For details on the types of income to which this tax applies, see page 14 in the General Income Tax and Benefit Guide.

If you are under 18 and have to pay tax on split income, complete Part 2 of Form T1206, Tax on Split Income, to calculate the provincial 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.

Line 23 - Nova Scotia additional tax for minimum tax purposes

If you have to pay minimum tax as calculated on Form T691, Alternative Minimum Tax, you will have to determine your Nova Scotia additional tax for minimum tax purposes. To do this, complete Form T1219, Provincial Alternative Minimum Tax, and enter the calculated amount on line 23 of Form NS428.

You can find information about minimum tax on page 37 in the General Income Tax and Benefit Guide.

Step 4 - Nova Scotia low income tax reduction

You can claim this tax reduction if you were a resident of Nova Scotia on December 31, 2000, and any of the following conditions applied to you:

• you were 19 years of age or older;
• you had a spouse; or
• you were a parent.

If you had a spouse on December 31, 2000, you and your spouse must decide who will claim the tax reduction, since only one of you can make this claim for your family.

You cannot claim the tax reduction if, on December 31, 2000, you were confined to a prison
or a similar institution and had been there for a total of more than six months during 2000.

Do not claim the tax reduction for a person who died in 2000.

Line 29 - Basic reduction

Claim $300 for yourself.

Line 30 - Reduction for spouse

Claim $300 if you had a spouse on December 31, 2000.

Line 31 - Reduction for equivalent-to-spouse

Claim $300 if you claimed an amount on line 305 of your return.

Line 32 - Reduction for dependent children born in 1982 or later

Enter at box 6099 the number of dependent children you have who were born in 1982 or later.

Do not include a child for whom you claimed the reduction for equivalent-to-spouse on line 31 of the form.

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, 2000, met all of the following conditions:

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

Line 36 - Net family income

Your net family income is the total of your net income and, if you had a spouse on December 31, 2000, your spouse's net income.

Your spouse`s net income is the amount from line 236 of your spouse's return, or the amount that would appear on line 236 if your spouse completed a return

Form NS479, Nova Scotia Credits

Political contribution tax credit

You can deduct part of the contributions you made in 2000 to recognized Nova Scotia political parties, or to candidates seeking election in the Nova Scotia House of Assembly.

How to claim

Enter your total contributions on line 1 of Form NS479.

Determine the amount to enter on line 2 as follows:

• For contributions of $100 or less, complete Column 1 below.
• For contributions of more than $100 but not more than $550, complete Column 2 below.
• For contributions of more than $550 but not more than $1,150, complete Column 3 below.
• For contributions of more than $1,150, enter $500 on line 2 of Form NS479.

Receipts - Attach to your paper return official receipts signed by an official agent of the political party or by the candidate. If you are using NETFILE, keep them in case we ask to see them.

Labour-sponsored venture capital tax credit

You can claim a credit equal to 15% of your investment in eligible shares you acquired in 2000 (that you did not claim on your 1999 return), or in the first 60 days of 2001.

If the investment is made by a spousal RRSP, the tax credit may be claimed by either you or your spouse.

Enter on Form NS479, 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 3 of Form NS479, calculate and enter your credit, to a maximum of $525.

You are also eligible for a federal tax credit. See lines 413 and 414 in the General Income Tax and Benefit Guide.

Receipts - Attach Form NSLSV to your paper return. If you are using NETFILE, keep it in case we ask to see it.

Equity tax credit

You can claim this credit for investments in eligible shares you acquired in 2000 (that you did not claim on your 1999 return) or in the first 60 days of 2001.

On line 7 of Form NS479, enter the credit shown on Form NSETC-1, Nova Scotia Equity Tax Credit, issued by the Nova Scotia Department of Finance.

You can carry forward unused Nova Scotia equity tax credits for seven years, or back three years. Any unused equity tax credit is shown on your most recent Notice of Assessment or Notice of Reassessment.

On line 8 of Form NS479, enter any unused credit from previous years that you want to use to reduce your Nova Scotia tax for 2000.

Use the chart below to calculate any unused credit available to carry back to previous years. Enter the amount you want to apply against your prior year Nova Scotia tax in boxes 6225, 6226, or 6227, whichever applies, on Form NS479.

Receipts - Attach Form NSETC-1 to your paper return. If you are using NETFILE, keep it in case we ask to see it.

Nova Scotia home ownership savings plan (NSHOSP) tax credit

To claim this credit, you must have been a resident of Nova Scotia on December 31, 2000.

Eligible contributions are amounts you deposited in 2000 (that you did not claim on your 1999 return), or in the first 60 days of 2001, into a Nova Scotia Home Ownership Savings Plan that was opened before January 1, 2000, with an approved financial institution.

If you had a spouse on December 31, 2000, you and your spouse must decide who will claim this credit, since only one of you can make the claim.

For more information on the Nova Scotia Home Ownership Savings Plan, contact your financial institution.

Receipts - Attach official receipts from your financial institution to your paper return. If you are using NETFILE, keep the receipts in case we ask to see them.

Table of NSHOSP tax credit rates

Look up the amount on line 14 of Form NS479, Nova Scotia Credits, to determine your NSHOSP tax credit rate below.