Both refundable and nonrefundable tax credits lower your tax bill dollar for dollar. Nonrefundable credits only apply to your tax liability, while refundable tax credits can wipe out your tax bill and provide a refund for the remaining credit.
The majority of tax credits are nonrefundable, but a handful of commonly used tax credits are refundable. These include Child Tax and GST.
#personalfinance #financialfreedom #finance #money #financialliteracy #financialindependence #budgeting #wealth #financetips #budget #moneymanagement #moneytips #financialgoals #motivation #debt #savings #moneymindset #savingmoney #success #tax #taxcanada
![](https://i.ytimg.com/vi/6fpkOYM7Nw0/mqdefault.jpg)