Tax credits
Non-refundable tax credit
A tax credit that reduces the tax you owe but cannot be paid to you as cash if you have no tax payable.
These credits help people who pay tax but may provide little direct cash to very low-income filers.
Where you may see this
Schedule 1 of the T1 return and CRA tax credit lines.
Commonly confused with
Refundable tax credit, which can generate payments beyond tax owed.
The exact definition and rules can differ by program. Check the official rules for the benefit you are applying for.
Related terms
Tax credits
Refundable tax credit
A tax credit that can be paid to you even if you owe no tax. If the credit is larger than your tax owing, you receive the difference as a payment.
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Ontario Works (OW)
Ontario's financial assistance program for people in temporary financial need, with employment participation requirements.
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Adjusted family net income (AFNI)
The income amount the government uses to calculate many income-tested benefits. It starts with family net income and applies specific adjustments from your tax return.
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Benefit year vs tax year
Your tax year is the calendar year on your return; many benefits use a July to June benefit year based on an earlier tax year.
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Canada Workers Benefit (CWB)
A refundable tax credit for low-income workers, with additional amounts for eligible families and people with disabilities.
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