Useful links for tax time!
We took some time to prepare reference links for the tax period. There are changes every year on tax rules and it is important for you to check if this can affect you! A tax credit is used to reduce the tax payable by the taxpayer who qualifies for it. What is the difference between a refundable and a non-refundable tax credit?
Non-refundable tax credits reduce the tax payable for a reference year, but are lost, in whole or in part, when the tax payable for that year is insufficient, that is, the amount of tax payable is smaller than the amount of the credit. However, some credits may be transferred to another taxpayer or carried forward to a future year.
Refundable tax credits are a form of government subsidy, since the person entitled to it receives them even when they have no tax to pay. In tax laws, these credits are treated as tax amounts paid by the taxpayer and must be repaid to the taxpayer.