In a move aimed at easing the financial burden on low-income seniors, the Province of Nova Scotia has announced the return of nearly $17 million in provincial income tax to seniors enrolled in the Guaranteed Income Supplement (GIS) rebate program. More than 11,000 seniors benefiting from the federal GIS will be eligible to receive their provincial income tax back.
The announcement comes as seniors continue to grapple with the rising cost of living, which has made it increasingly challenging for many to manage their expenses. Allan MacMaster, the Minister of Finance and Treasury Board, empathized with these concerns, stating, “With the cost of living on the rise, we know it’s tough for many people to make ends meet and that every dollar counts.” He highlighted the tangible impact of the program, noting that it injects real money into seniors’ pockets and assists them in meeting their day-to-day financial obligations.
Under the provisions of the program, eligible seniors can anticipate receiving a refund ranging from a minimum of $50 to a maximum of $10,000, contingent on their provincial income tax payments. To be eligible for this refund, applicants must meet the following criteria:
- Be 65 years of age or older within the taxation year.
- Report income on line 14600 (line 146 prior to 2019) of their T1 return in the taxation year.
- Have provincial income tax payable on line 42800 (line 428 prior to 2019) in the taxation year.
Importantly, seniors are not required to initiate an application for this refund. However, it is imperative that they file a tax return annually. Even seniors who did not file a return within the current taxation year but meet the eligibility criteria can receive the refund when filing their tax return.
The Department of Finance and Treasury Board will be responsible for assessing eligibility and facilitating the refund process based on individuals’ tax returns. The distribution of refund cheques will encompass around 10,600 cheques for the 2022 tax year, while the remainder will pertain to the 2016-2021 tax years. These latter refunds correspond to late tax filings or tax reassessments.
It is noteworthy that approximately 43 percent of Nova Scotia seniors, equivalent to approximately 60,000 individuals, are recipients of the GIS annually. Those seniors who are eligible for the refund need not declare it on their taxes for the subsequent year, as the refund is considered tax-free.
