Which taxes does the credit for household expenses affect?

The credit is deducted primarily from your taxes on earned income and capital income. Most other deductions reduce the amount of earned income that is taxed, not the amount of tax itself. This means that the tax credit for household expenses has a bigger effect on your taxes.

Please note that if you do not have enough taxes payable to benefit from the full amount of the credit, the amount that was not credited to you this year cannot be carried over to the next year.