Personal credits usually reduce tax payable rather than income itself, which is why it helps to understand them alongside deductions.
What Belongs Here
Use this subsection when the question is about a claim that affects tax payable on the return rather than reducing income before the tax calculation.
Best Starting Pages
Use these pages when the question is about reducing tax payable rather than reducing income directly.
Practical Reader Path
This subsection works best when paired with one close contrast:
- Compare with Personal Deductions if you are deciding whether something lowers income or lowers tax payable.
- Compare refundable and non-refundable credits if the question is whether a credit can still matter when tax owing is low.
In this section
- Basic Personal Amount
The basic personal amount is the core non-refundable credit amount that shelters part of income from federal tax.
- Non-Refundable Tax Credit
Non-refundable tax credits reduce tax payable but generally cannot create or enlarge a refund beyond tax otherwise owing.
- Refundable Tax Credit
Refundable tax credits can produce a payment even when tax otherwise payable is low or nil.