I have a positive Ontario tax reduction, but my Ontario non-refundable tax credits is equal to the Ontario income tax. What is the effect of the reduction then?

[TurboTaxJeffrey · Accepted solution]

If your Ontario tax liability is already zero, then you can't reduce the taxes further.  If you still are showing a tax liability for Ontario, I suspect it is the Ontario Health Premium...which is a calculation based on your taxable income, and credits can not be used to reduce that.

[ycmei6]

Thank you! In this case is it possible to use fewer of my credits, for example by carrying forward more of my provincial tuition credits, so that I can take advantage of the tax reduction?

[TurboTaxJeffrey]

If you have tuition credits that can be used to reduce the current tax year's liability, you are required to use them.