Table of Contents

• Form NB428, New Brunswick Tax
• Step 1 - New Brunswick tax on taxable income
• Step 2 - New Brunswick non-refundable tax credits
• Step 3 - New Brunswick Tax
• Form NB479, New Brunswick Credits

The information in this section will help you complete Form NB428, New Brunswick Tax, and, if applicable, Form NB479, New Brunswick Credits.

The terms spouse and common-law partner are defined on page 12 of the General Income Tax and Benefit Guide.

The term end of the year means December 31, 2001, the date you left Canada if you emigrated in 2001, or the date of death for a person who died in 2001.

Form NB428, New Brunswick Tax

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

If you had income from a business with a permanent establishment outside New Brunswick, complete Form T2203, Provincial and Territorial Taxes for 2001 - Multiple Jurisdictions, before you complete Form NB428.

You also have to complete Form NB428 if you were a non-resident of Canada in 2001 and you earned income from employment in New Brunswick, or received income from a business with a permanent establishment only in New Brunswick.

Step 1 - New Brunswick tax on taxable income

Enter, on line 1, your taxable income from line 260 of your return. Use this amount to determine which one of the four columns you have to complete. Enter this amount on line 2 of the applicable column and complete the calculation.

Step 2 - New Brunswick non-refundable tax credits

New Brunswick non-refundable tax credits reduce the amount of provincial tax you owe. However, if the total of these credits is more than the amount of provincial tax you owe, you will not get a refund for the difference.

Step 3 - New Brunswick Tax

Line 14 - New Brunswick tax on split income

If you have to pay federal tax on split income on line 424 of your federal Schedule 1, 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. You can find information about tax on split income on page 14 of the General Income Tax and Benefit Guide.

Line 22 - New Brunswick additional tax for minimum tax purposes

If you have to pay minimum tax as calculated on Form T691, Alternative Minimum Tax, you will also have to determine your New Brunswick minimum tax. To do this, complete Form T1219, Provincial Alternative Minimum Tax, and enter the calculated amount on line 22 of Form NB428. You can find more information about minimum tax on page 30 of the General Income Tax and Benefit Guide.

Line 25 - Unused low-income tax reduction from your spouse or common-law partner

If you had a spouse or common-law partner on December 31, 2001, and he or she did not need all of the low-income tax reduction to reduce his or her New Brunswick tax to zero, you can claim, on line 25 of your Form NB428, the unused amount calculated on his or her Form NB428.

Lines 27 to 41 - New Brunswick low-income tax reduction

You can claim this tax reduction if you were a resident of New Brunswick on December 31, 2001.

If you had a spouse or common-law partner on December 31, 2001, you and your spouse or common-law partner have to decide which one of you will claim this low-income tax reduction for your family. Any unused amount can be claimed by the other spouse or common-law partner.

Line 27 - Basic amount

Claim $260 for yourself.

Line 28 - Reduction for spouse or common-law partner

Claim $260 if you had a spouse or common-law partner on December 31, 2001.

Line 29 - Reduction for an eligible dependant

Claim $260 if you claimed the amount for an eligible dependant on line 305 of Schedule 1.

Line 33 - Net family income

If you had a spouse or common-law partner on December 31, 2001, your net family income is the total of your net income (line 236 of your return) and your spouse or common-law partner's net income (line 236 of his or her return or the amount that would appear on line 236 if he or she completed a return).

Note
Enter your marital status and the information about your spouse or common-law partner (including his or her net income, even if it is zero) in the Identification area on page 1 of your return.

Lines 42 to 44 - 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, 2001, your spouse or common-law partner can claim, on his or her 2001 return, any amount of the low-income tax reduction that you do not need to reduce your New Brunswick tax to zero.

Complete the calculation at lines 42 to 44 to determine the unused amount that can be claimed by your spouse or common-law partner on his or her Form NB428.

Form NB479, New Brunswick Credits

Lines 1 to 4 - Political contribution tax credit

You can deduct part of the contributions you made in 2001 to political parties, district associations, or independant candidates registered in New Brunswick.

How to claim

Enter your total contributions on line 1 of Form NB479.

Determine the amount to enter on line 2 as follows:

• For contributions of $100 or less, complete column 1 of the following chart.
• For contributions of more than $100 but not more than $550, complete column 2 of the following chart.
• For contributions of more than $550 but not more than $1,150, complete column 3 in the following chart.
• For contributions of more than $1,150, enter $500 on line 2 of Form NB479.

Receipts - Attach to your paper return official receipts signed by the official representative of the political party, district association, or independant candidate. If you are filing electronically, keep all of your documents in case we ask to see them.

Lines 5 to 9 - Labour-sponsored venture capital fund tax credit

You may be able to claim a credit for investments you made in a labour-sponsored venture capital corporation in 2001 (that you did not claim on your 2000 return) or in the first 60 days of 2002.

Enter on line 5 of Form NB479 the credit shown on Certificate NB-LSVC-1 to a maximum of $750.

You may also be eligible for a federal tax credit. For details, see lines 413 and 414 in the General Income Tax and Benefit Guide.

Receipts - Attach Certificate NB-LSVC-1 to your paper return. If you are filing electronically, keep all of your documents in case we ask to see them.