In 2024, the British Columbia Non-refundable Tax Credits are changed. Among the changes is a differential made to the tax credit reduction, dividend tax credit of Canadian corporations for Canada, eligibility of the foreign tax credit of the province, and the introduction of British Columbia’s tax credit exclusively. income-symmetric grant system, tax credits, and the use of tax credits for tuition expense claims. Such modifications account for similar tax credit alterations in the tax year 2024, which is in the province of British Columbia.
This article explains the various non-refundable tax credits available to British Columbia residents, Tax rates, and How to calculate them.
Tax Rates and Income Thresholds
In 2024, the B.C tax calculator based on the provincial income thresholds and the British Columbia tax reduction was updated to reflect the index of consumer price. This simply signifies that the volumes will have been taken forward by 5.0% as of January 1st, 2024. Also, employees will be afforded these choices automatically, even though they might not have filed Form TD1BC in the first place, BC Personal Tax Credits Return, 2024.
For 2024 the British Columbia tax rate and threshold are as follows:
Tax Rates and Income Thresholds
| Threshold /Taxable Income | Tax rate |
| Up to $47,937 | 5.06% |
| Between $47,937.01 and $95,875, | 7.70% |
| between $95,875.01 and $110,076 | 10.50% |
| $110,076.01 and $133,664 | 12.29% |
| between $133,664.01 and $181,232 | 14.70% |
| between $181,232.01 and $252,752 | 16.80% |
| over $252,752 | 20.50%. |
British Columbia Tax Reduction
In 2024, British Columbia has revised its tax reduction measures as follows:
- Employers will more heavily subsidize taxpayers with an annual income of up to $24,338 and whose payment is up to $547 with the tax made up for them by their TANF credits.
- Those with an annual income (of Rs 260, 993 to Rs 476,000) are liable for partial deduction.
- The $547 decrease lowers 3.56% of income above $24 338 until nobody above $39 703 earns will get a reduction.
British Columbia Non-Refundable Tax Credits
In line with the prerequisites and claiming processes the majority of eligible British Columbia’s non-refundable tax credits. They are quite similar to those of the federal non-refundable tax credits. Despite that, fundamentally the provincial credits have the provision of stretching the money to more than the federal credits available to the students.
There are several tax credits are available; here are some key ones for your information:
British Columbia caregiver amount
In British Columbia, the CTC i.e. Caregiver Tax Credit and FCTC i.e. Family Caregiver Tax Credit are two non-refundable tax credits. The CTC provides tax relief for those who are caregivers for a family member at home. They also accommodate other caregivers who are providing non-refundable tax credits. On the flip side, the FCTC is another non-refundable credit to caregivers who have been qualified for certain credit. Like the spouse or common-law partner, an eligible dependant, and caregiver amount.
You can claim up to $4,946 for a relative with a disability who resides in Canada, such as your child, parent, sibling, or other relatives you haven’t previously claimed. Your dependents, and their spouses, must be 18 years or older, have earned taxable income less than $21,684 (the exemption amount for 2022), and be fully or partially dependent due to physical or mental impairments. Use Worksheet BC428 to calculate and enter the final amount on line 58175 of Form BC428.
Search and Volunteer amount:
This non-refundable tax credit for those residents of British Columbian only live here at the end of the year, which is when you don’t claim it.
The option to either declare the firefighter’s volunteer amount (VFA) or search and rescue volunteer amount (SRVA) is available. If you fulfill the criteria to claim that on your tax returns. you can listed the VFA under and in the space specified on line 31220, write it under line 58315 as well. If you advise the SRVA, the SRVA on line 31240, enter it on line 58316.
Adoption expenses
The Adoption Expenses Credit is a non-taxable income for the individual who has incurred expenses associated with the adoption of a child namely adoption agency costs, legal fees, and travel expenses.
If you meet all the requirements you will be able to include this amount in your tax return which should be done on line 31300. You can assert up to $17,131 in respect to the out, your situation, of the allowable expenses per child. For example, on line 2700, you claimed the work amount. So you enter the amount of the work in line 5400.
Disability amount for self
You can claim this amount only if you can demonstrate your entitlement toward such tax credits by claiming them on line 31600 of your tax return. When you attain the age of 18 after the close of the year you were able to enter 8,477 on line 58440 of form BC428.
If you have attained 18 years by the end of the year. Please use Worksheet BC428 to determine the amount to fill line 58440 with.
Your tuition and education amounts
Your tuition and financial aid will be based on the submissions in the designated application created by you.
Similarly, like father like son the residents of Columbia. In 2022, if your child, grandchild, and/or their spouse or common-law partner qualify. You are entitled to an unused tuition credit amount. An eligible student can transfer up to $5,000, which is his/her current tax credit, in excess from one year to the next. Header 58600 in your tax return should show all transferred amounts from the student account provided on line 58600.
The student would need to record the transfer in 59200 of the Schedule BC(S11).
Farmers’ food donation tax credit
Farmers’ food donation tax credit is another way to encourage these agricultural businesses to participate in community organizations as a way of giving back directly.
If you filed farming income as a profession on or after January 1, 2017, and declared a qualifying gift to a charity. You may be eligible for the BC farmers’ donation food tax credit. Donating farm produce to the needy or vulnerable entails claiming 25% of the taxable gifts falling within this category.
How Tax Rates Are calculated?
In British Columbia (BC) for the 2024 Tax Year, individuals calculate the non-refundable tax credits as the product of the base limit and the minimum tax rate. An example of this is the lowest tax rate of 5.06% of $12,580. which is the personal tax credit rate, multiplied by the tax basic rate. This renders a maximum credit of $641.59.
If the tax liability amount is exceeded, your refund will not be sent. These credits will solely reduce taxes due. Similarly, other credits like the spouse or common-law partner amount and eligible dependent amount typically follow the same calculation schemes.
You can calculate your non-refundable tax rate utilizing TaxTool.ca.
Key Tax Deadlines for Claiming
The key tax deadlines for claiming non-refundable tax credits in British Columbia are as follows:
1. April 30, 2023: This is the deadline for filing your 2022 Income Tax to ensure you receive your payments
2. December 31, 2024: The extension of the training tax credit allows individuals in British Columbia to claim this credit.
3. Tax Year 2024: The net income threshold for the B.C. tax reduction credit is $24,338, and the reduction factor is 3.56%. This information is crucial for individuals looking to claim this specific non-refundable tax credit in British Columbia.
Moreover, these deadlines are important to claim and maximize the benefits of British Columbia’s Non-refundable Tax Credits.
Remember, tax laws can change. For the latest information and personalized advice, consult the Canada Revenue Agency (CRA) or a tax professional.
FAQS
Am I eligible for the BC Non-refundable Tax Credit?
To be eligible for the credit in 2024, you must: To be eligible for the credit in 2024, you must:
- Choose British Columbia if you will become a resident for the current tax year.
- Below this amount of net income, $24,338 for the 2024 tax year.
How much is the credit worth
The maximum credit amount is available to those with a net income under the threshold ($24,338 for 2024). The credit amount gradually decreases as your net income increases above the threshold.
How does the credit decrease?
The credit is reduced by 3.56% of your net income which goes above the threshold. This means the credit becomes zero once your net income reaches $39,703 (for 2024).
How do I claim the credit?
You can claim the British Columbia Non-refundable Tax Credit when you file your tax return using form BC428.
