New Brunswick tax deadline: What you need to know before filing

Tax time has arrived in New Brunswick. The time when people look back at the past year’s income, hope that the government will pay you back some money, and for some, a time of confusion.

What do you need to file, and what expenses and earnings do you leave off the tax forms.

Global News New Brunswick has put together some tips to help you get through the filing process with a little more ease.

READ MORE: Helpful hints for filing your federal Canadian taxes 

What is the deadline for filing my taxes?

April 30 — if you have a balance owing. The regular filing deadline is April 30, but since that falls on a Sunday this year, the CRA will consider your taxes filed on time as long as they are received or postmarked on or before May 1.

June 15 — If you or your spouse or common-law partner ran a business in 2016. But you still have to pay your taxes by April 30 if you owe money to the government.

What is the deadline to contribute to my RRSP?

There is no deadline to contribute to your RRSP. But if you wanted to claim your contribution as a tax deduction against your 2016 income, it’s too late, unfortunately. You had to make your contribution by March 1.

What are the tax brackets?

The first $41,059 of taxable income – pay 9.68 per cent in tax

Next $41,060 of taxable income, up to $82,119 – pay an additional 14.82 per cent in tax

On the next $51,388 of taxable income, up to $133,507 – pay an additional 16.52 per cent in tax

Next $18,593 of taxable income, up to $152,100 – pay an additional 17.84 per cent in tax

Any taxable income over $152,100 – pay an additional 20.3 per cent in tax

What do you need to do before filing taxes?

In addition to the federal documents required when filing taxes, New Brunswick has some forms of its own you’ll need.

• A T1 General 2016 form, which allows you to note your income, credits and deductions
• NB428 to be completed for provincial tax and credits.
• A provincial worksheet, which can be used to do the calculations you may need when filling out the New Brunswick Tax and Credits form.
• The Schedule NB(S11), for students to fill out to claim tuition and education amounts, what provincial amount can be transferred to another person, and what you can carry forward to a future year
• The Schedule NB(S2), to claim an unused portion of a spouse or common-law partner’s provincial amounts
• The TD1NB, for use if you’re a new employee working in New Brunswick or a pensioner living in the province. Your employer will then use the form to determine your provincial tax deductions.

What are some new tax credits you can file for?

HST Tax Credit: While not something you claim when filing your tax return, any New Brunswicker is eligible to receive this credit if they either are 19 years or older, have or had a common-law partner or spouse, or are or were a parent. Residents need to meet at least one of these criteria, according to TurboTax. How much you will receive is based on your net family income – if your net family income is $35,000 or less you can receive the maximum amount of $300 for yourself, $300 if you have or had a partner, and $100 per child.  If you earn more than this, up to $50,000 in income for an individual, you could receive a partial credit.

What are some provincial tax credits and deductions you can take advantage of?

New Brunswick Personal Tax Credit: This can be filled out if you’re a person working in New Brunswick or pensioner living in the province and have a new employer or payer, want to change previously claimed amounts, or increase how much tax is deducted at the source. You then can sign the form and turn it in to your employer.

New Brunswick child tax benefit: This benefit is paid monthly tax-free to qualifying families with children under the age of 18. The amount is combined with the Canada Child Benefit.

Low-income tax reduction: This reduction allows New Brunswickers who resided in the province at the end of the year receive a reduction. To qualify, an individual must have a net income of less than $37,352 or if they have an eligible dependent, spouse or common-law partner, their combined net income must be less than $58,419.

Labour-sponsored venture capital fund tax credit: If you made an investment in a labour-sponsored venture capital corporation, you can claim up to a maximum $2,000 based on the amount provided in a certificate from the corporation. This credit can be found at Line 75 of NB428.

Small Business Investor Tax Credit: This credit can be claimed for investments in shares acquired in 2016. The maximum credit you can claim per tax year is $125,000. This credit is at Line 77 on NB428.

Provincial Political Contributions: If a contribution was made to a political party, district association or independent candidate in the province, you can claim that donation. When filing, you can claim a maximum of 75 per cent for contributions of $200 or less, 50 per cent of any contribution between $200 and $550, and 33.33 per cent of any donation over $550 up to $1,075. If you donated more than $1,075, the highest you can claim is $500. This credit is at Line 73 of NB428.

Seniors’ Home Renovation Tax Credit: If you are a New Brunswick resident aged 65 or older, or living with someone of that age, you can claim up to $10,000 of eligible expenses for renovations done to your primary residence. For you to be eligible, the renovations must have been made for mobility or safety. Only one person in the household can claim the credit, or more than one can claim a portion, but the amount claimed must not exceed $10,000. This takes Line 7 from NB(S12) and can be put on Line 479 of your return.

How are taxes calculated?

The amount of tax you pay is determined based on how much money you make. You can make various deductions that reduce the amount of income you have to pay tax on.

Then, you look for tax credits to reduce the amount of income you have to pay tax on. They can include the public transit amount, which allows you to claim the cost of your transit passes, the home buyers’ amount, which lets people who purchased homes claim $5,000 in the years that they bought; or even your moving expenses, under certain conditions.

Your federal tax is calculated on whatever income is left after deductions.