9.3.6 Non-refundable and refundable tax credits
- 9.3.1 Deductions from income
- 9.3.2 Registered retirement savings plans
- 9.3.3 Other registered savings plans
- 9.3.4 Video: Taxes and registered savings plans
- 9.3.5 Tax credits
- 9.3.6 Non-refundable and refundable tax credits
- 9.3.7 What you owe or get back
- 9.3.8 Taxes in your life
- 9.3.9 Summary of key messages
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Non-refundable tax credits
All taxpayers can claim a basic non-refundable tax credit for their income tax, known as the personal amount. It is adjusted annually to allow for inflation and other factors. In 2022, the personal amount for federal taxes was $14,398 and the personal amount for Quebec taxes was $16,143.
The amounts allowed, for example the basic personal amount, transform into tax credits at the rate of 15% for the federal authorities and Quebec. These tax credits help reduce the taxes payable.
Example: Martin had a taxable income of $39,000 in 2022. The Quebec income tax he would pay on that income is $5,850. The Quebec personal amount is $16,143, that becomes a tax credit of 15 percent, or $2,421.45. This tax credit reduces his Quebec income tax to $3,428.55.
Quebec income tax:
Quebec personal amount:
Subtract 15% of personal amount:
Quebec income tax payable:
Similar calculations are used to calculate Martin's other non-refundable tax credits. Because these credits are non-refundable, he won't receive a tax refund if they total an amount larger than the taxes he owes.
In addition, people in certain categories are entitled to additional personal exemptions. For example, on your 2022 income tax returns:
- If you are over the age of 65, you can claim up to $7,898 on the T1 return and up to $3,395 on the Quebec TP-1.D-V return.
- If you have children, you can claim $2,350 for each child under the age of 18 on the T1 return.
- If you receive a pension, you can claim up to $2,000 on the T1 return and up to $3,017 on the TP-1.D-V return.
- If you have a disability, you can claim up to $8,870 on the T1 return and up to $3,584 on the TP-1.D-V return.
- If you earned income from a job, you can claim up to $1,287 on the federal T1. (A similar amount could be deducted from income on the TP-1.D-V return.)
- If you paid union or professional dues, you can claim them on the TP-1.D-V return. (They are treated as a deduction from income on the T1 return.)
- If you care for a dependent who is infirm, you can claim up to $7,525 on the T1 return. There is no similar credit on the TP-1.D-V return.
Some of these exemptions can be transferred to another taxpayer. For example, a dependent student can transfer the education amount to a parent, who can use it to reduce his or her own income.
Step 5 - Part B of the T1 tax return lists the non-refundable federal income tax credits (see illustration). Review the non-refundable tax credits listed in the illustration and make note of any that you think apply to you.
Text version: Step B - Federal non-refundable tax credits
Step B - Federal non-refendable tax credit
Line 30000 - Basic personal amount
Line 30100 - Age amount
Line 30300 - Spouse or common-law partner amount
Line 30400 - Amount for an eligible dependant
Line 30450 - Amount for infirm dependants age 18 or older
Line 30800 - Canada Pension Plan (CPP) or Québec Pension Plan (QPP) contributions through employment
Line 31000 - CPP or QPP contributions on self-employment and other earnings
Line 31200 - Employment insurance premiums through employment
Line 31300 - Adoption expenses
Line 31400 - Pension income amount
Line 31500 - Caregiver amount
Line 31600 - Disability amount for self
Line 31800 - Disability amount transferred from a dependant
Line 31900 - Interest paid on your student loans
Line 32300 - Your tuition, education, and textbook amounts
Line 32400 - Tuition, education, and textbook amounts transferred from a student
Line 32600 - Amounts transferred from your spouse or common-law partner
Line 34900 - Donations and gifts
Line 35000 - Total federal non-refeundable tax credit
Page 3 of the Quebec TP-1.D-V return and Schedules A to V list the non-refundable Quebec income tax credits (see illustration). Review the non-refundable tax credits listed in the illustration and make note of any that you think apply to you.
Text version: Quebec's Non-refundable tax credits
Revenu Québec's Non-refundable tax credits
Line 350 - Basic personal amount
Line 361 - Age amount, amount for a person living alone and amount for retirement income. Complete Schedule B.
Line 367 - Amount for dependants and amount transferred by a child 18 or over enrolled in post-secondary studies. Complete Schedule A.
Line 376 - Amount for a severe and prolonged impairment in mental or physical functions (see the guide)
Line 378 - Expenses for medical services not available in your area
Line 381 - Medical expenses. Complete Schedule B.
Line 385 - Interest paid on a student loan. Complete Schedule M. Amount claimed
Line 390 - Tax credit for volunteer firefighters and search and rescue volunteers (see the guide)(Specify: 390.1)
Line 391 - Tax credit for career extension (see the guide)
Line 392 - Tax credit for recent graduates working in remote resource regions. Complete form TP-776.1.ND-V.
Line 395 - Tax credits for donations and gifts (see the guide)(Amount from line 1 of Work Chart 395 Line 393)
Line 397 - Tax credit for union, professional or other dues (Line 397.1 × 10%)
Line 398 - Tax credit for tuition or examination fees. Complete Schedule T.
Line 398.1 - Tax credit for tuition or examination fees transferred by a child (see the guide)
Non-refundable tax credits are available only when you meet specific conditions, so check the tax guide to be sure that they apply.
- For more information, go to Canada Revenue Agency's General income tax and benefit package or get a copy of the guide at your local post office.
- For more information, go to Revenu Québec's Completing Your Income Tax Return or get a copy of the Quebec guide at your office of Revenu Québec or at most Desjardins caisses.
Refundable tax credits
Refundable tax credits are credits that will be paid to you if you are eligible. Often the federal or provincial government pays them to you in a series of payments through the year to assist with living expenses.
Federal refundable tax credits include:
- the goods and services tax/harmonized sales tax (GST/HST) credit
- the Working Income Tax Credit.
Quebec refundable tax credits include:
- the Solidarity Tax Credit (combining tax credits for the Quebec sales tax, the property tax refund and the credit for individuals living in northern villages)
- the Work Premium, Supplement to the Work Premium and Adapted Work Premium
- tax credits for adoption, caregiver and childcare expenses for children under 16 years of age
- a tax credit for home support of seniors aged 70 or over
- a tax credit for certain medical expenses.
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