A non-refundable tax credit reduces the amount of tax you pay on your taxable income. You will not get money back from a non-refundable tax credit, but you can use it to offset how much you will pay.

For example; If you determine that you owe $1,000 in personal taxes, but you’re also eligible for $500 in non-refundable credits, you’ll only pay $500. However, if you don’t owe any taxes and you are eligible for $500 in non-refundable tax credits, you will not get a $500 refund.

Examples of Canadian Non-Refundable Tax Credits

Those are some of the most common non-refundable tax credits, but there are many more you may be eligible for at the federal, provincial, and territorial levels, such as:

What About My Allowable Amount of Non-Refundable Tax Credits?

For full-year Canadian residence, you can claim the full amount of your non—refundable credits. At the federal level, the government places a maximum on how many non-refundable tax credits that a non-resident of Canada can claim (assuming they are electing until Section 217). If you are a resident or citizen, this restriction does not apply to you and you can claim all of your non-refundable tax credits.

What is a Refundable Tax Credit?

Refundable tax credits are credits that the government will pay you if you are eligible for them. Unlike the non-refundable credits, refundable credits can result in a negative amount which means CRA will give you this amount as a refund.

Examples of refundable tax credits

You can claim these credits on your Income Tax and Benefit Return, which include the following:

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