The employment amount is a non-refundable tax credit in Canada that helps employees reduce the taxes they owe. It is designed to recognize work-related expenses that employees typically cover out of pocket.
How It Works
The government sets a fixed maximum claimable amount each year. Employees can claim either the amount they earned in employment income or the maximum limit, whichever is lower. This reduces taxable income through a credit, but since it is non-refundable, it cannot create a refund on its own.
Final Thoughts
The employment amount provides modest tax relief for workers. While it won’t drastically change tax bills, it helps ensure employees receive recognition for basic work-related expenses.