Personal Income Tax Credits

Tax credits are deductions you may be able to claim when you complete and submit your income tax return. Tax credits can be based on income, investments, training or education, activities you’re involved in, expenses you incur or the work that you do.

Refundable and Non-Refundable Tax Credits

Tax credits can be refundable or non-refundable.

Refundable tax credits will reduce your taxes owing and if the credit is higher than the combined federal and B.C. income taxes you owe, you’ll receive the difference as a refund. 

For example, the B.C. training tax credit is a refundable tax credit. If you owe $1,000 in income taxes and your B.C. training tax credit is $2,500, your taxes owing will be reduced to zero and you'll receive a refund of $1,500.

Non-refundable tax credits will only reduce your B.C. taxes owing to zero, but won’t provide a refund even if the total of the credits is higher than your B.C. taxes owing.

For example, the political contributions tax credit is a non-refundable tax credit. If you owe $100 in income taxes and your political contributions tax credit is $500, your taxes owing will be reduced to zero but you won’t receive a refund of $400.

Basic Tax Credits

Some tax credits are available to everyone as long as the credit is applicable to the person’s particular situation. For these basic tax credits, you apply for the credit by completing the related line on your income tax return and attaching any required supporting documents.

Other Tax Credits

Other tax credits are more specialized and only apply to you if you meet specific qualifications. For these tax credits, you may need to fill out a separate application form and send it in with your personal income tax return. 

There are a number of tax credits you may qualify for. Find credits that apply to you and read about how you can apply for the tax credit.