ARCHIVED - 5001-N Completing Your Newfoundland Form
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ARCHIVED - 5001-N Completing Your Newfoundland Form
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Table of Contents
The information in this section will help you complete Form NF428, Newfoundland Tax and Credits.
The terms spouse and common-law partner are defined on page 12 in 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.
Tax tip
A growing number of Newfoundland tax measures are distinct from corresponding federal measures. However, many rules relating to calculating Newfoundland tax are still based on the federal Income Tax Act. As a result, you may find it easier to calculate your federal tax first. Your total taxes payable will be the same, no matter which tax you calculate first.
Form NF428, Newfoundland Tax and Credits
Complete Form NF428 if you were a resident of Newfoundland or Labrador at the end of the year.
If you had income from a business with a permanent establishment outside Newfoundland or Labrador, complete Form T2203, Provincial and Territorial Taxes for 2001 - Multiple Jurisdictions , before you complete Form NF428.
You also have to complete Form NF428 if you were a non-resident of Canada in 2001 and you earned income from employment in Newfoundland or Labrador, or received income from a business with a permanent establishment only in Newfoundland or Labrador.
Step 1 - Newfoundland 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 three columns you have to complete. Enter this amount on line 2 of the applicable column and complete the calculation.
Step 2 - Newfoundland non-refundable tax credits
Newfoundland now has its own non-refundable tax credits. These 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.
The eligibility criteria and rules for claiming the Newfoundland non-refundable tax credits are the same as for the federal non-refundable tax credits. However, the value and calculation of some Newfoundland non-refundable tax credits are different from the corresponding federal credits.
To calculate many of the non-refundable tax credits, you will need to use the new Provincial Worksheet in this book.
Newcomers to Canada and emigrants
If you prorated any of the amounts you claimed on lines 300 to 306, 315 and 316 of your federal Schedule 1, you are required to perform the same pro-ration on the corresponding provincial amounts at lines 5804 to 5820, 5840 and 5844.
Line 5804 - Basic personal amount
Claim the basic personal amount of $7,410.
Line 5808 - Age amount
You can claim this amount if you were 65 or older on December 31, 2001, and your net income (line 236 of your return) is less than $49,134.
If your net income is:
- $25,921 or less, enter $3,482 on line 5808; or
- more than $25,921 but less than $49,134, complete the chart for line 5808 on the Provincial Worksheet in this book to calculate your claim.
Line 5812 - Spouse or common-law partner amount
You can claim this amount if you met the rules for claiming it on line 303 of federal Schedule 1 and your spouse or common-law partner's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $6,661.
If your spouse or common-law partner's net income is:
- $606 or less, enter $6,055 on line 5812; or
- more than $606 but less than $6,661, complete the calculation to determine your claim and enter the result on line 5812.
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 of page 1 on your return.
Line 5816 - Amount for an eligible dependant
You can claim this amount if you met the rules for claiming it on line 305 of federal Schedule 1 and your dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $6,661.
If your dependant's net income is:
- $606 or less, enter $6,055 on line 5816; or
- more than $606 but less than $6,661, complete the chart for line 5816 on the Provincial Worksheet in this book to calculate your claim.
If you have not already completed the federal Schedule 5, complete and attach it to your return.
Line 5820 - Amount for infirm dependants age 18 or older
You can claim this amount if you met the rules for claiming it on line 306 of federal Schedule 1 and your dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $7,410.
Complete the chart for line 5820 on the Provincial Worksheet in this book to calculate your claim.
Line 5824 - Canada Pension Plan or Quebec Pension Plan contributions through employment
Enter on this line the amount you claimed on line 308 of federal Schedule 1.
Line 5828 - Canada Pension Plan or Quebec Pension Plan contributions on self-employment and other earnings
Enter on this line the amount you claimed on line 310 of federal Schedule 1.
Line 5832 - Employment Insurance premiums
Enter on this line the amount you claimed on line 312 of federal Schedule 1.
Line 5836 - Pension income amount
You can claim this amount if you met the rules for claiming it on line 314 of federal Schedule 1. Enter on line 5836 the same amount that you entered on line 314.
Line 5840 - Caregiver amount
You can claim this amount if you met the rules for claiming it on line 315 of federal Schedule 1 and your dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $13,853.
Complete the chart for line 5840 on the Provincial Worksheet in this book to calculate your claim.
Line 5844 - Disability amount
You can claim this amount if you met the rules for claiming it on line 316 of federal Schedule 1. In calculating Newfoundland tax, there is no supplement to the disability amount for individuals under the age of 18. If you qualify for this amount, enter $4,233 on this line, regardless of your age.
Line 5848 - Disability amount transferred from a dependant (other than your spouse or common-law partner)
You can claim this amount if you met the rules for claiming it on line 318 of federal Schedule 1. Complete the chart for line 5848 on the Provincial Worksheet in this book to calculate your claim.
Line 5852 - Interest paid on your student loans
Enter on this line the amount you claimed on line 319 of federal Schedule 1.
Line 5856 - Tuition and education amounts
The tuition and education amounts that you claimed, on line 323 of your federal Schedule 1, may be different than the provincial amounts you calculate.
Complete Part 1 of Schedule NF(S11), Provincial Tuition and Education Amounts , to calculate your claim.
Receipts - If you are filing a paper return, attach the completed Schedule NF(S11), but not your receipts or other forms. Keep them in case we ask to see them. If you are filing electronically, keep all of your documents.
Transferring and carrying forward amounts
You may not need all of your 2001 tuition and education amounts to reduce your provincial income tax to zero. In this case, you may transfer all or part of the unused portion to one person, either your spouse or common-law partner (who would claim it on line 5864), or your parent or grandparent, or your spouse 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 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.
Complete Part 2 of Schedule NF(S11) to calculate the provincial amount available to transfer, as well as the back of Form T2202, Education Amount Certificate , or T2202A, Tuition and Education Amounts Certificate , to designate who can claim it and the amount the person can claim. This amount may be different from the amount claimed federally by that same person.
Tax tip
If you are transferring an amount to a designated person, do not transfer more than the person can use. That way, you can carry forward as much as possible to use in a future year.
You can carry forward and claim in a future year the part of your tuition and education amounts you do not need to use (and do not transfer) for the year. Complete Part 3 of Schedule NF(S11) to calculate the amount you can carry forward.
Line 5860 - Tuition and education amounts transferred from a child
You can claim this amount if you met the rules for claiming it on line 324 of federal Schedule 1.
Enter, on line 5860, the total of all provincial amounts transferred to you that each student designated on the back of their Form T2202 or T2202A and on line 20 of their Schedule NF(S11). The student may choose to transfer an amount that is less than the provincial amount allowable calculated in Part 2 of his or her Schedule NF(S11).
Note
The student cannot transfer to you any unused tuition and education amounts carried forward from a previous year, but only those from 2001.
See other rules for line 324 in the General Income Tax and Benefit Guide that may apply if the student has a spouse or a common-law partner.
Receipts - If you are filing a paper return, do not include the student's Schedule NF(S11), forms, or official tuition fees receipts, but keep them in case we ask to see them. If you are filing electronically keep all of your documents.
Line 5864 - Amounts transferred from your spouse or common-law partner
You can claim these amounts if you met the rules for claiming them on line 326 of federal Schedule 1. Complete Schedule NF(S2), Provincial Amounts Transferred From Your Spouse or Common-law Partner , to calculate your claim.
Receipts - Do not include any receipts or forms [other than your own Schedule NF(S2)] for your spouse or common-law partner, but keep them in case we ask to see them. If you are filing electronically, keep them in case we ask to see it.
Line 5868 - Medical expenses
The allowable 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 2001, and have not been claimed in 2000. Your total expenses have to be more than either 3% of your net income (line 236 of your return) or $1,614, whichever is less.
Note
If the total of expenses claimed is more than $1,614 but less than $1,678, it is important that you enter the amount on line 5868 and on line 330 of your federal Schedule 1.
Line 5872 - Medical expenses adjustment
If you claimed, on line 5868, medical expenses for a dependant, other than your spouse or common-law partner, whose net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is more than $7,410, complete the chart for line 5872 on the Provincial Worksheet in this book to determine the amount to enter on line 5872.
Tax Tip
Provincially, the medical expenses adjustment that you calculate will be less than the amount you calculated federally. If that is the case, and the adjustment you calculate is less than the medical expenses for that dependant, it will be to your benefit to include these expenses at line 5868.
Line 5896 - Donations and gifts
To calculate your claim for line 5896, enter the amounts from lines 345 and 347 of federal Schedule 9 and multiply them by the rates on lines 33 and 34 of Form NF428.
Step 3 - Newfoundland Tax
Line 38 - Newfoundland 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 additional information on tax on split income on page 14 of the General Income Tax and Benefit Guide .
Line 46 - Newfoundland 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 Newfoundland additional tax for minimum tax purposes. To do this, complete Form T1219, Provincial Alternative Minimum Tax , and enter the calculated amount on line 46 of Form NF428. You can find information about minimum tax on page 30 of the General Income Tax and Benefit Guide .
Newfoundland Credits
Lines 52 to 55 - Political contribution tax credit
You can deduct part of the contributions you made in 2001 to registered Newfoundland political parties or district associations, or to registered Newfoundland independant political candidates during an election period.
How to claim
Enter your total contributions on line 52 of Form NF428 and determine the amount to enter on line 53 as follows:
- For contributions of more than $1,150, enter $500 on line 53.
- For contributions of less than $1,150, determine the amount for line 53 by using the chart on the Provincial Worksheet in this book.
Receipts - Attach to your paper return official receipts signed by an official of the recognized political party or constituency association, or the candidate's agent. If you are filing electronically, keep your receipts in case we ask to see them.
Lines 56 to 62 - Equity tax credit
You can claim this credit for investments in eligible shares you acquired in 2001 or in the first 60 days of 2002 and did not claim on your 2000 return. On line 56 of Form NF428, enter the credit shown on Form NFETC-1, Newfoundland Equity Tax Credit, issued by the Newfoundland and Labrador Department of Finance.
The maximum credit that you can claim is $50,000 per year, including unused amounts.
You can carry forward unused Newfoundland equity tax credits for seven years, or back three years. However, you cannot carry back credits to a year before 2000. Any unused equity tax credit is shown on your most recent Notice of Assessment or Notice of Reassessment.
On line 57 of Form NF428, enter any unused credit from 2000.
Use the chart for line 63 on the Provincial Worksheet in this book to calculate any of your 2001 unused credit available for carry back to 2000. Enter on line 63 of Form NF428 the amount you want to carry back and apply against your 2000 Newfoundland tax.
Receipts - Attach Form NFETC-1 to your paper return. If you are filing electronically, keep it in case we ask to see it.
Page details
- Date modified:
- 2002-11-30