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Tax Credits for Individuals Glossary

Master the language of tax credit for individuals with this easy-to-navigate A–Z reference

 

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

  • Adjusted Family Net Income – The combined net income of an individual and their spouse or common-law partner, used by the CRA to determine eligibility and calculate the amount of the GST/HST credit.
  • Age Amount – A non-refundable federal tax credit for individuals aged 65 or older, intended to reduce income tax for those with modest to moderate incomes; claimed on line 30100 of the tax return.
  • Canada CAIP – The bank deposit label used to identify the Climate Action Incentive Payment issued by the federal government through direct deposit.
  • Canada Caregiver Credit (CCC) – A non-refundable federal tax credit for individuals who provide financial or practical support to a spouse, common-law partner, or relative with a certified mental or physical impairment.
  • Canada Child Benefit (CCB) – A tax-free monthly payment to eligible families raising children under 18; recipients must qualify for the CCB to receive the Child Disability Benefit.
  • Canadian Resident (Senior Credits Context) – An individual who resides in Canada for tax purposes throughout the year, required to claim the Age Amount and other senior tax credits.
  • Canadian Resident for Income Tax Purposes – A person who meets residency requirements under Canadian tax law and is therefore eligible to receive benefits such as the GST/HST credit.
  • Carbon Pricing – A government policy that imposes a cost on carbon emissions from fossil fuel consumption, intended to encourage emission reductions.
  • Care Facility (CCC Context) – A residence such as a nursing home or assisted living facility; if a dependant lives in such a facility, contributions made by the caregiver may still qualify for the CCC.
  • Census Metropolitan Area (CMA) – A geographic designation used by Statistics Canada; individuals living outside a CMA may qualify for the CAIP rural supplement.
  • Certified Mental or Physical Impairment – A medically verified condition that significantly affects an individual’s ability to function and qualifies them as a dependant for the Canada Caregiver Credit.
  • Child Disability Benefit (CDB) – A tax-free monthly benefit paid to families eligible for both the Canada Child Benefit and the Disability Tax Credit for a child under 18 with a severe and prolonged disability.
  • Climate Action Incentive Payment (CAIP) – A quarterly tax-free payment issued to residents of certain provinces to return proceeds from federal carbon pricing and help offset related household costs.
  • Common-Law Partner – A person who lives with the taxpayer in a conjugal relationship and meets the legal definition under the Income Tax Act, affecting family income calculations for benefits.
  • Credit Phase-Out – The gradual reduction of the GST/HST credit as a household’s adjusted family net income exceeds a specified threshold.
  • Dependant (CCC) – A spouse, child, parent, grandparent, sibling, or other relative with a qualifying impairment for whom the caregiver provides regular support; must reside in Canada.
  • Digital News Subscription Tax Credit – A non-refundable federal tax credit that allows individuals to claim 15% of up to $500 in eligible digital news subscription expenses, with a maximum credit of $75 per year; introduced to support Canadian journalism.
  • Direct Deposit (CRA) – An electronic payment method through which CAIP and other government benefits are deposited directly into a taxpayer's bank account.
  • Disability Tax Credit (DTC) – A non-refundable tax credit that reduces income tax for individuals with a severe and prolonged impairment; eligibility for the DTC also qualifies individuals for the HATC.
  • DTC Approval (Child Context) – The process by which a child is certified as eligible for the Disability Tax Credit, typically involving a medical practitioner’s certification of a severe and prolonged impairment.
  • Eligible Digital News Subscription – A paid subscription that provides access to original written news content from a Qualified Canadian Journalism Organization (QCJO), excluding entertainment, video, or international media bundles.
  • Federal Carbon Pricing System – A national framework for carbon pricing applied in provinces and territories without their own approved systems; eligibility for CAIP depends on this system.
  • Grab Bars – Permanently installed safety devices that help individuals maintain balance and reduce fall risk in bathrooms or other parts of the home; considered eligible for the HATC.
  • GST/HST Credit – A tax-free quarterly payment intended to offset sales tax costs for individuals and families with low to modest incomes.
  • Handrails – Fixed support rails installed on staircases or hallways to aid mobility and prevent falls; eligible as a qualifying renovation under the HATC.
  • Healthcare Provider (DTC Certification) – A qualified medical practitioner responsible for certifying a child’s eligibility for the Disability Tax Credit; required for CDB qualification.
  • Home Accessibility Tax Credit (HATC) – A non-refundable federal tax credit equal to 15% of eligible renovation costs (up to $20,000) for improving accessibility or safety in a principal residence for seniors or individuals with disabilities.
  • Household Calculation (CAIP) – The method used by the CRA to determine CAIP payment amounts, based on the number of eligible adults and children in a household.
  • Income Tax Return – The annual filing required by the CRA to assess eligibility for the GST/HST credit; even those with no income must file to qualify.
  • Income Threshold – The maximum adjusted family net income at which full or partial GST/HST credit payments are available, adjusted annually for inflation.
  • Inflation Adjustment – The annual revision of benefit thresholds and credit amounts by the CRA to account for changes in the cost of living.
  • Marital Status – A factor in GST/HST credit calculations, affecting the credit amount and how family income is assessed.
  • Medical Expense Credit – A non-refundable credit for eligible medical expenses that exceed a minimum threshold, often useful for seniors with high out-of-pocket health costs.
  • Medical Expense Tax Credit – A non-refundable credit that may be claimed for medically necessary expenses, including certain renovations; can be claimed in conjunction with the HATC, but not for the same portion of expenses.
  • Monthly Benefit (CDB) – The regular monthly amount received under the CDB, based on income and the number of eligible children; recalculated annually.
  • Net Family Income – The total net income of all individuals in a family unit, used to assess eligibility and determine the amount of GST/HST credit.
  • Net Income (Dependant – CCC Context) – The dependant’s annual income, used to determine the reduction or phase-out of the CCC; credit amounts decrease as the dependant’s net income exceeds certain thresholds.
  • Net Income (Senior Credits Context) – An individual’s total income minus allowable deductions, used to determine eligibility for the Age Amount and to calculate phase-outs for various senior credits.
  • Non-Refundable Tax Credit – A credit that reduces taxes payable but does not generate a refund if the credit exceeds taxes owed; the HATC is a non-refundable credit.
  • Non-Refundable Tax Credit (Digital News) – A credit that reduces income tax payable but does not result in a refund if the total credit exceeds the taxpayer’s liability; applies to this credit.
  • Ongoing Support (CCC) – Regular financial or practical assistance for a dependant’s basic needs (e.g., food, housing, medical care), required to qualify for the Canada Caregiver Credit.
  • Parental Leave – A temporary reduction in employment income due to caregiving responsibilities; may affect GST/HST credit eligibility in subsequent years.
  • Payment Period – The 12-month cycle during which GST/HST credit payments are distributed based on the previous year's income.
  • Pension Income Amount – A federal tax credit for up to $2,000 in eligible pension income (excluding CPP and OAS), providing modest tax relief for retirees with private pension sources.
  • Pension Income Splitting – A tax planning strategy where one spouse transfers up to 50% of their eligible pension income to the other, potentially reducing taxes and increasing credits for the couple.
  • Primary Caregiver – The person recognized by the CRA as responsible for a child’s care; this person receives child-related portions of benefits such as CAIP.
  • Primary Caregiver (CDB Context) – The person primarily responsible for a child’s care and upbringing; must reside with the child and meet other criteria to qualify for the Canada Child Benefit and CDB.
  • Principal Residence (HATC Context) – The primary home where the individual or a qualifying relative resides; eligible for accessibility-related renovations under the HATC.
  • Qualified Canadian Journalism Organization (QCJO) – A Canadian news media entity recognized by the CRA as eligible for digital news subscription tax credit purposes; must meet specific criteria for original reporting.
  • Qualified Professional (HATC) – A licensed contractor or specialist who performs renovations eligible under the HATC; work must be verifiable with documentation.
  • Qualifying Province (CAIP) – A province where the federal carbon pricing backstop applies, making residents eligible for CAIP payments (e.g., Ontario, Alberta).
  • Reimbursed Subscription – A news subscription cost paid back by an employer, which makes it ineligible for the Digital News Subscription Tax Credit.
  • Revenue-Neutral – A policy design in which the government returns all proceeds collected (from carbon pricing, in this case) to citizens, often through payments like the CAIP.
  • Retroactive Benefit Payment – A backdated payment issued by the CRA when a child’s DTC is approved retroactively, resulting in past CDB amounts being credited to the family.
  • Retirement Income – Income received during retirement, which may be lower than employment income and could increase eligibility for the GST/HST credit.
  • Rural Supplement (CAIP) – An additional 10 percent top-up on CAIP payments available to individuals living outside census metropolitan areas, reflecting increased heating and transportation costs.
  • Sabbatical – An extended leave from employment, often unpaid, that may lower income temporarily and affect GST/HST credit eligibility.
  • Separation (CAIP Impact) – A change in marital status that can alter CAIP eligibility and household payment structure; must be reported to the CRA.
  • Severe and Prolonged Impairment – A key eligibility requirement for the Disability Tax Credit, describing a disability that is both long-lasting and significantly affects daily functioning.
  • Self-Employment – Earning income through independent work or business, which can impact net income and GST/HST credit calculations.
  • Senior Tax Credits – A group of federal tax measures (e.g., Age Amount, Pension Income Amount, DTC, Medical Expense Credit) that reduce income tax for Canadians aged 65 and older.
  • Shared Caregiving Expenses – Costs split between multiple caregivers (e.g., siblings), potentially qualifying one individual to claim the CCC based on their contributions toward a dependant's care.
  • Spousal Amount (CCC Context) – A related non-refundable tax credit that may include the caregiver amount if the dependant is the claimant’s spouse; sometimes claimed instead of a separate CCC entry.
  • Spousal Transfer Rules (Senior Credits) – Tax provisions that allow a spouse or common-law partner to claim unused portions of the Age Amount or other credits if one partner has insufficient income to benefit.
  • Stairlift – A motorized chair or platform lift installed along a staircase to help individuals with mobility challenges navigate between floors; considered an eligible HATC expense.
  • Subscription Bundle (Ineligible Content) – A digital subscription that includes non-news services such as video streaming, lifestyle, or sports content, which may disqualify the subscription or limit the eligible portion.
  • Tax Receipt (Digital News Credit) – A digital or email confirmation of payment for an eligible subscription, used to support a claim for the Digital News Subscription Tax Credit if requested by the CRA.