Plain meaning
A credit that can reduce income tax otherwise payable, but generally does not create a refund by itself.
Also called
non-refundable tax credits
Key points
- Non-Refundable Tax Credit depends on the eligibility rules set by the relevant tax, benefit, or program legislation.
- Filing an annual income tax and benefit return is often required so CRA can calculate eligibility and payment amounts.
- Amounts may depend on income, family status, age, disability status, residence, expenses, or the type of property or transaction involved.
- Because the support can produce a payment or reduce an amount paid at purchase, timing and documentation can affect household cash flow.
Why it comes up
Many personal tax credits, including the basic personal amount and disability tax credit, are non-refundable credits.