September 13th, 2012
Some people wonder – can you claim your graduate retention rebate first, and hold all or part of your tuition and education tax credits until after the 6 year retention rebate expires? ¬†To which I can only respond: ¬†I wish.
The real answer is no, you can’t. ¬†You are required to use your tuition credits first, which is a bit disappointing, because many graduating students have sizeable carryforwards of tuition costs. ¬†It often takes several years to “sop up” these tuition carryforwards. ¬†By the time they are used up, you’ve already eaten up some or all of the 6 years of the retention rebate. ¬†This means you don’t get the full benefit of the graduate retention rebate.
The best way around this is to transfer the maximum allowable portion of your tuition and eduction tax credits to someone else (and then hope they share the tax savings with you!) …… but you can only do this in the year you receive the credits. ¬†You can’t transfer carryforward amounts.
Filed under: Personal Tax by David Boese No Comments »