Why did my tax credit disappear from my return?

If you’re seeing certain non-refundable tax credits disappear or clear from your return (such as donations), it is likely because you have other non-refundable credits you need to claim first to reduce your tax owing to zero.

Non-refundable tax credits are designed to reduce your taxes to zero and must be claimed in a certain order. Not all non-refundable tax credits are created equal, however. Some, like the First-time home buyers tax credit, must be claimed in the year it is applicable for and can’t be carried forward to a future year. Others, like tuition amounts and donations, can be carried forward to a future year if you don’t need all or a part of it to lower your taxes to zero.

Once your tax payable is down to zero:

  • Any additional non-refundable tax credits you claim won’t result in a refund (refer to What’s the difference between a non-refundable and a refundable tax credit? to see how these credits work)
  • Non-refundable tax credits that can be carried forward and you don’t need to claim because your tax payable is already at zero, will clear from your return. These credits can include your tuition amounts, donations, and interest paid on student loans. You can carry forward these unused tax credits and claim them in a future year.

Note: You’ll need to keep a track of your unused tax credits that clear from your return for carrying forward purposes. Be sure to keep any supporting documentation for these credits too. If you use H&R Block’s tax software next year, you’ll be able to see your carry forward amounts from the previous year, automatically.

Your non-refundable tax credits must be claimed in the following order:

  1. Personal amounts (which includes Basic personal amount, Spouse or common-law amount, Amount for an eligible dependant, Caregiver amount for children under 18 years of age, Amount for infirm dependants age 18 or older, and Caregiver amount)
  2. Age amount
  3. Credits for allowable CPP contributions and EI premiums
  4. Pension income amount
  5. Canada employment amount
  6. Adoption expenses
  7. Home accessibility tax credit
  8. First-time home buyers tax credit
  9. Volunteer firefighters’ and Search and research volunteers’ amounts
  10. Disability amount (including disability amount transferred from a dependant)
  11. Unused tuition and education and textbook amounts
  12. Tuition amount
  13. Tuition amount transferred from a dependant
  14. Amounts transferred from a spouse or common-law partner
  15. Medical expenses
  16. Donations and gifts
  17. Interest paid on a student loan
  18. Dividend tax credit

Note: If, for example, you have tuition amounts and donations to claim for 2024, you’ll need to claim your tuition amounts first. If your tuition amounts lower your tax payable to zero, you won’t be able to claim your donations in 2024 but will be able to carry them forward for use in a future year. If, however, your tuition amounts are not enough to lower your tax payable to zero, you’ll be able to claim your donation amounts.