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New Member
posted Apr 14, 2021 11:52:01 AM

How do I know if I can claim low income tax reduction? And if so how much do I claim?

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1 Replies
Level 2
Apr 15, 2021 9:53:51 AM

You can claim the low-income tax reduction if you are a resident of the four Atlantic provinces. Your individual or family income must fall below a certain threshold. 

 

Prince Edward Island low-income tax reduction
You can claim the Prince Edward Island low-income tax reduction if you were a resident of Prince Edward Island on December 31, 2020, and any of the following conditions applies to you:

  • You were 19 years of age or older
  • You had a spouse or common-law partner
  • You were a parent

The income threshold for 2021 is $19,000 and $350 can be claimed.

 

Nova Scotia low-income tax reduction
You can claim the Nova Scotia low-income tax reduction if you were a resident of Nova Scotia on December 31, 2020, and any of the following conditions apply to you:

  • You were 19 years of age or older
  • You had a spouse or common-law partner
  • You were a parent

See Canada Revenue Agency ( CRA) form NS428 for a detailed calculation.

 

New Brunswick low-income tax reduction
You can claim the low-income tax reduction if you were a resident of New Brunswick on December 31, 2020.

 

See Canada Revenue Agency (CRA) form NB428 for a detailed calculation.

 

Newfoundland and Labrador low-income tax reduction
You can claim the Newfoundland and Labrador low-income tax reduction if you were a resident of Newfoundland and Labrador on December 31, 2020.

 

The income threshold for 2021 is $20,619 and $859 can be claimed.