Once your graduation celebrations are over and you have settled into your first year of university or college, there are some important tax steps for you, the student, to take.
Even though many young adults do not file their personal tax returns every year, it is vital for you to do so.
Filing ensures you qualify for all of the refundable tax credits which are available to you. For example, you are limited to transferring $5,000 of your tuition and education credits to another individual (such as a parent or a grandparent). Combined, your annual tuition and education credits will often be greater than $5,000. The individual receiving your transferred credits cannot carry forward any excess amounts. You, the student, must file the form itself in order to carry forward the credit to your tax returns in future years.
Not filing these tax returns can result in thousands of dollars of lost credits you could claim against your future earnings.