The Government of Canada offers various tax credits and benefits to help individuals and families with the cost of living and to support specific needs. These programs can significantly reduce the amount of income tax you owe or provide you with tax-free payments throughout the year. Understanding which credits and benefits you are eligible for is an important part of managing your personal finances.
The CCB is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years of age. The amount you receive is based on your family's adjusted net income and the number and ages of your children. To receive the CCB, you must file your income tax return every year, even if you had no income. This ensures that the Canada Revenue Agency (CRA) has the information it needs to calculate your benefit amount accurately.
The GST/HST credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST they pay. You are automatically considered for this credit when you file your income tax return. Like the CCB, the amount of the credit is based on your family's income and composition. It is an important support for many Canadians and helps make the tax system more equitable.
Non-refundable tax credits reduce the amount of federal income tax you owe. If the total of these credits is more than the tax you owe, you will not receive a refund for the difference. Common non-refundable credits include the basic personal amount, credits for spouse or common-law partner, and credits for medical expenses and disability. We provide detailed information on how to claim these credits on your T1 return and what documentation you need to support your claims.
Refundable tax credits also reduce the amount of tax you owe, but if the total of these credits is more than the tax you owe, you can receive the difference as a refund. Examples include the Canada Workers Benefit (CWB), which provides support for low-income workers, and the Climate Action Incentive payment, which helps offset the costs of federal carbon pricing. These credits provide direct financial assistance to those who need it most and are an essential part of Canada's social safety net.