Tuition, education, and textbook amounts are non-refundable tax credits to post-secondary students and their families for the cost the courses.
Tuition, education and textbooks amounts include the following three components:
- Tuition fee tax credit;
- Education tax credit; and
- Textbook tax credit
Unused tax credit can be carried forward or transferred to other family members
As a student, you may have low income, so you don’t have enough tax payable to utilize the tax credit. Fortunately, up to $5,000 (tax credit of $750 for a tax rate of 15%) unused tuition, education, and textbook amounts can be transferred to spouse, parents, or grandparents. Alternatively, you can carry forward unused and untransfrred amounts and use the tax credit in later year when you have higher income.
Even if you don’t have any income, you should file tax return to claim the tuition credit for future use or to transfer the credit to other family members.