Final answer:
The statement about transferring certain tax credits to a spouse is true, allowing for more efficient use of tax credits such as tuition, pension, and age amount when one spouse has no tax to pay.
Step-by-step explanation:
The statement Tuition, pension, and age amount credits can be transferred to your spouse if you have no tax to pay is true. In the context of personal income taxes, certain non-refundable tax credits can indeed be transferred to a spouse or common-law partner if the person who earned the credits does not need them to reduce their own tax liability to zero. This mechanism helps families optimize their combined tax situation by allowing the transferring of unused portions of certain credits, like the tuition, education, and textbook amounts, as well as the pension and age amount. Each type of credit has specific rules on transferring, and there are limits on how much can be transferred. Additionally, the person receiving the transfer must have tax payable against which the credits can be applied.
It's important for taxpayers at all income levels to be aware of these rules, especially since proper knowledge and utilization can lead to significant tax savings. Understanding how to use these tax credits effectively is especially beneficial when planning saving and investing for retirement, as it can influence the amount of disposable income available for retirement contributions.