The Poverty Reduction Credit (PRC)
The Poverty Reduction Credit provides tax-free quarterly payments to eligible Nova Scotians. The program was established on July 1, 2010.
There is no application process for the Poverty Reduction Credit. The Department of Community Services will determine eligibility in June of each year. If you are eligible, you will receive your first PRC payment in July of the current year.
Eligibility is based on the following:
- Individuals and couples that received Income Assistance from January to December of the previous year. Only one person of the married or common-law couple can receive the credit on behalf of the family.
- Income Tax Return filed for the previous tax year.
- Annual adjusted income below $12,000 in the previous tax year. As of July 2021, the income threshold will be increased to an annual adjusted income below $16,000 in the previous tax year, meaning more individuals will be eligible.
- No children up to the time eligibility is determined.
The Poverty Reduction Credit program year runs from July to June.
$125.00 issued in each of July, October, January, and April. ($500.00 for the year).
Poverty Reduction Credit Line: 1-866-424-1269.
Questions and Answers
- What is the purpose of the Nova Scotia Poverty Reduction Credit (PRC)?
The PRC will provide financial assistance to Nova Scotians living in poverty.
- Who is eligible for the PRC?
If you were in receipt of Income Assistance in the previous calendar year, have filed an income tax return for that year, have no children, and have annual adjusted income of $12,000 or less, you may be eligible.
- Do I have to apply for the PRC?
No. Eligibility is determined by the Department of Community Services and cheques are issued on a quarterly basis.
- When will payments be issued?
Payments are made at the same time as the GST rebate- early July, October, January, and April.
- I am married. Does each of us receive the PRC?
No, only one person of the married or common-law couple can receive the credit on behalf of the family.
- I have children. Why can’t I receive the PRC?
The purpose of the PRC is to assist those living in poverty, who do not benefit from other income supplements like the Canada Child Tax Benefit, provided to families with children. Families with children are also eligible for the Nova Scotia Affordable Living Tax Credit.
- I am not receiving Income Assistance. Can I still receive the PRC?
Individuals who receive Income Assistance and do not have children are those most vulnerable to long term poverty. You must meet the eligibility requirements above to receive the PRC.
- How will the Nova Scotia Affordable Living Tax Credit and PRC affect federal benefits I receive, like the Canada Child Tax Benefit, the GST rebate, or my Nova Scotia income Assistance?
Neither of these credits will affect your federal or provincial benefits.
- Do you have information on my Goods and Services Tax (GST) Credit?
No. For information on the GST, call the Canada Revenue Agency at 1-800-959-1953.
- Can you answer questions about my income tax return?
No. For information on your income tax return, call the Canada Revenue Agency at 1-800-959-8281.
Can I receive the Poverty Reduction Credit payment by direct deposit?
Direct deposit is not available at this time.