Navigating the landscape of Yukon’s non-refundable tax credits can significantly reduce your provincial tax liability. These credits are designed to support residents by acknowledging various personal circumstances, from age and disability to caregiving responsibilities and volunteer work. Each credit targets specific needs and situations, ensuring that Yukoners can maximize their tax benefits. Below is a comprehensive overview of the available non-refundable tax credits, who qualifies for them, how to claim them, and the forms required for each. Understanding and utilizing these credits can lead to substantial savings on your provincial taxes.
Basic Personal Amount
The Basic Personal Amount is a non-refundable tax credit that allows Yukon residents to reduce their provincial tax payable. For 2024, the amount is $15,190. All residents of Yukon are eligible for this credit, and it is automatically applied when you file your tax return. No specific form is required to claim this amount.
Spouse or Common-Law Partner Amount
If you support your spouse or common-law partner and their net income is below a certain threshold, you may claim up to $15,190. To qualify, you must be married or in a common-law relationship and living together at the end of the year. This amount is claimed on your tax return using Schedule YT428.
Amount for an Eligible Dependant
This credit is available if you are single, divorced, separated, or widowed and support a dependent who lives with you. The maximum claim is $15,190. The dependant must be related to you and live with you. This amount is claimed using Schedule YT428.
Age Amount
Yukon residents aged 65 or older can claim an age amount of up to $5,082, subject to income thresholds. To qualify, you must be 65 years or older at the end of the year. This credit is claimed on your tax return using Schedule YT428.
Pension Income Amount
If you receive eligible pension income, you can claim up to $1,000 as a non-refundable tax credit. This amount is claimed on your tax return and applies to income such as pensions and annuities. It is claimed using Schedule YT428.
Disability Amount
The Disability Amount allows you to claim $8,113 if you have a severe and prolonged impairment in physical or mental functions. To qualify, a medical practitioner must certify the impairment on Form T2201, Disability Tax Credit Certificate. The amount is then claimed on Schedule YT428.
Amount for Infirm Dependants Age 18 or Older
If you support an infirm dependent who is 18 or older, you can claim up to $7,140. The dependent must be related to you and rely on you for support. This credit is claimed on your tax return using Schedule YT428.
Caregiver Amount
The Caregiver Amount provides up to $7,140 if you provide in-home care for an infirm relative. To qualify, the relative must live with you and depend on you for care. This credit is claimed on your tax return using Schedule YT428.
Medical Expenses
You can claim medical expenses that exceed the lesser of 3% of your net income or $2,479. Eligible expenses include a wide range of medical services and products. This credit is claimed using Form T1 and the detailed list of expenses is provided on Schedule 5 of your tax return.
Yukon First Nations Income Tax Credit
Members of a Yukon First Nation may claim this credit, which is 25% of the federal basic personal amount. It reduces provincial tax payable for those who are registered members. This credit is claimed on your tax return using Schedule YT432.
Volunteer Firefighters’ Amount
Volunteer firefighters in Yukon can claim $3,000 as a non-refundable tax credit if they perform at least 200 hours of eligible volunteer firefighting services. This amount is claimed on your tax return using Schedule YT428.
Search and Rescue Volunteers’ Amount
Search and rescue volunteers can claim $3,000 if they complete at least 200 hours of eligible search and rescue volunteer services. This credit is claimed on your tax return using Schedule YT428.
Adoption Expenses
You can claim up to $16,667 for eligible adoption expenses incurred during the adoption process. This credit applies to fees, travel costs, and other related expenses. The amount is claimed using Form T1 and the adoption expenses are detailed on Schedule 5 of your tax return.
Home Accessibility Expenses
If you made renovations to improve accessibility for a disabled person, you can claim up to $10,000. Eligible expenses include modifications like installing ramps or widening doorways. This credit is claimed on your tax return using Schedule 12.
Tuition and Education Amounts
Students can claim the tuition fees paid to eligible educational institutions, plus an education amount of $400 per month of full-time study or $120 per month of part-time study. The tuition amount is claimed using Form T2202, and the education amount is included on Schedule 11.
Student Loan Interest
Interest paid on student loans can be claimed as a non-refundable tax credit. The loans must be from a government program. This amount is claimed on your tax return using Schedule 11.
