Tax credits are amounts that reduce the tax you pay on your taxable income but some are refundable and some aren't, according to TurboTax.
Non-refundable tax credits can reduce your payable tax to zero. However, you can't get a refund based on these amounts.
Refundable tax credits can get you money back when it's more than the amount of tax due or if there's no tax due because the deductions have reduced it to zero.
So, here are a bunch of tax credits and benefits you could be eligible to claim on your tax return this year!
Canada training credit
To help Canadians with the cost of eligible training fees, the Canada training credit (CTC) is a refundable tax credit that's available.
You can claim the CTC on your income tax and benefit return for tuition and other fees paid for courses you took in 2023.
To claim the CTC, you must meet all of these conditions:
- you were a resident in Canada for all of 2023
- you were at least 26 years old and less than 66 years old at the end of the year
- you have a CTC limit for 2023 on your latest notice of assessment or reassessment for 2022
If you file an income tax and benefit return, the Canada Revenue Agency will review the criteria and increase your limit by $250 if you qualify each year, up to a maximum of $5,000 in a lifetime.
Even in years where you claim the CTC, you can still accumulate $250 in your limit for the next tax year.
The amount you can claim for the CTC is whichever amount is less:
- your CTC limit for the tax year
- 50% of the eligible tuition and other fees paid to an eligible educational institution in Canada for courses you took in the year, or fees paid to certain bodies for an occupational, trade or professional exam taken in the year
You claim the CTC on line 45350 of your income tax and benefit return and it will reduce your tax owing.
If the credit is more than your tax owing, you could get a refund from the federal government for the difference.
Multigenerational home renovation tax credit
The multigenerational home renovation tax credit (MHRTC) is a new refundable tax credit that can be claimed on your 2023 tax return.
If you're eligible for the MHRTC, you can claim this credit for certain renovation expenses you incurred to create a self-contained secondary unit.
That secondary unit must allow a senior or an adult who is eligible for the disability tax credit to live with a qualifying relative.
You can claim up to $50,000 in qualifying expenditures for each qualifying renovation that's completed during the tax year.
The tax credit is 15% of your costs — up to a maximum of $7,500 — for each claim you're eligible to make.
Starting in the 2023 tax year, the MHRTC is claimed on line 45355 of your income tax and benefit return.
Canada Workers Benefit
The Canada Workers Benefit (CWB) is a refundable tax credit to supplement the earnings of low-income workers.
There are advanced payments with the CWB that are known as the Advanced Canada Workers Benefit (ACWB).
The ACWB payments are now issued automatically to those who received the benefit in the previous tax year. That means Form RC201, Canada Workers Benefit Advance Payments Application has been discontinued.
Starting in 2023, amounts from your RC210 slip are to be reported on Schedule 6, Canada Workers Benefit to calculate the amount that you enter on line 41500 of your return.
For the CWB, you enter the amount calculated on Schedule 6 on line 45300 of your return.
Donations and gifts
If you made a donation or gave a gift to certain institutions, you could be able to claim federal and provincial or territorial non-refundable tax credits on line 34900 when you file your tax return.
You can usually claim part or all of the eligible amount of your gifts up to the limit of 75% of your net income for the tax year.
You can claim a tax credit based on the eligible amount of your gift to qualified donees including registered charities, registered Canadian amateur athletic associations, registered national arts service organizations, and more.
Typically, the eligible amount of your gift is the amount shown on your charitable donation receipt.
Interest paid on your student loans
You could be eligible to claim the interest paid on your student loan for post-secondary education in 2023 or the previous five years if you received it under:
- Canada Student Loans
- Canada Student Financial Assistance
- Apprentice Loans
- similar provincial or territorial government programs
You can only claim an amount for interest you haven't already claimed.
If you have no tax payable for the year the interest is paid, the CRA has recommended not claiming it on your return. You can carry the interest forward and apply it on your return for the next five years.
You enter the eligible amount of interest paid on your student loans on line 31900 of your tax return.
Canada caregiver credit
If you support a spouse or common-law partner, or a dependant with a physical or mental impairment, you could be eligible for the Canada caregiver credit — a federal non-refundable tax credit.
How much you can claim depends on your relationship with the person you are claiming the credit for, your circumstances, the person's net income, and whether other credits are being claimed for that person.
For your spouse or common-law partner, you could be able to claim an amount of $2,499 on line 30300. You could also claim an amount up to $7,999 on line 30425.
For an eligible dependant 18 years of age or older, you could claim an amount of $2,499 on line 30400. Also, you could claim an amount up to $7,999 on line 30425.
For an eligible dependant under 18 years old at the end of the year, you could claim an amount of $2,499 on line 30400 or on line 30500.
Disability tax credit
The disability tax credit (DTC) is a non-refundable tax credit that helps people with disabilities, or their supporting family members, reduce the amount of income tax they may have to pay.
If you have a severe and prolonged impairment, you can apply for the credit. If you are approved, you can claim the credit at tax time.
There is a base disability amount and a supplement for children with a disability.
Disability amounts for the 2023 tax year are:
- $9,428 for those 18 and older
- $14,928 (the $9,428 disability amount and the $5,500 supplement for children) for those 17 years old and younger
If you're the person with the impairment, you enter the disability amount on line 31600.
If you're the supporting family member of the person with the impairment, you enter the disability amount on line 31800.
If you're the spouse or common-law partner of the person with the impairment, you enter the disability amount on line 32600.
The CRA will not refund the remaining amount of the credit if the DTC total is more than the amount you owe on your taxes.
Digital news subscription tax credit
You can claim digital news subscription expenses up to $500 for amounts that you paid in 2023.
According to the CRA, a qualifying subscription expense is the amount you paid in the year for a digital news subscription with a qualified Canadian journalism organization that doesn't hold a licence to carry on a broadcasting undertaking.
Also, the digital news subscription must give access to digital content that is primarily written news.
If you have an eligible subscription, you can claim the digital news subscription tax credit on line 31350 of your T1 Income Tax and Benefit Return.
Climate action incentive payment
The climate action incentive payment is a tax-free amount to offset the cost of federal pollution pricing in Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, P.E.I., New Brunswick, and Newfoundland and Labrador.
It includes a supplement for residents of small and rural communities.
To claim the climate action incentive payment rural supplement, you need to tick the box on page two of your income tax and benefit return.
The rural supplement is already included in the basic amount for P.E.I. so if you live in that province you don't have to claim it on your tax return.
Also, the 2022 rural supplement question for New Brunswick will be on the 2023 income tax and benefit return. Then, a retroactive payment will be issued for the 2022 base year.
This article's cover image was used for illustrative purposes only.
