If you invested in eligible shares of a business registered under the ETC (Equity Tax Credit) program during 2016 or within the first 60 days of 2017, and the government of Nova Scotia issued you a NSETC-1 receipt for your investments, you can claim the T1285: Nova Scotia equity tax credit.
This credit allows you to claim 35% of your investment (up to $17,500 in credits for a maximum investment of $50,000) to reduce your Nova Scotia provincial tax payable. Any unused amounts will show up on your notice of assessment or reassessment. You can carry your unused amounts forward for up to 7 years, or back for up to 3 years. You can’t carry forward more than $17,500 at a time.
Remember to keep all of your documents if you’re filing electronically, just in case the CRA asks to see them later. If you’re filing a paper return, remember to attach your T1285 and NSECT-1 receipt.
Where do I claim this?
Follow these steps in H&R Block’s tax software to file your 2016 taxes:
Before you begin, make sure that you told us that you lived in NOVA SCOTIA on December 31, 2016.
- Under the PREPARE tab, click the LET’S TALK ABOUT 2016 icon.
- Select the checkbox labelled I had investments and/or investment income, or I bought and/or sold property.
- Click the PENSION PLANS AND INVESTMENTS icon. You will find yourself here:
- Under the RESOURCE INCOME AND CREDITS heading, select the checkbox labelled Nova Scotia equity tax credit (T1285), and then click Continue.
- When you arrive at the page for your Nova Scotia equity tax credit, enter your information into the tax software.