Answer
Instead of reducing your taxable income like a tax deduction does, non-refundable tax credits reduce your taxes owing.
On a $1,000 CEDIF purchase, your 35% non-refundable tax credit amounts to $350. If you owe, for example, $1,000 in provincial income taxes, the $350 provincial equity tax credit would reduce your taxes owing to $650.
The tax credit can be carried back three years or forward seven years on your tax return and is claimed on form #T1285. New Dawn can provide you with a copy of this form during your visit.
Was this helpful?
Be the first to comment
Sign in with
Facebook Twitter