What you need to know about Tuition Tax Credits

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Everyone can agree that the cost of college or university tuition can make a significant dent to someone's wallet. Because of the huge cost associated with tuition, qualified students are able to claim through Tuition Tax credit.

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Are you Eligible for a Tuition Credit?

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Here is a list of who is eligible for this tax credit:

● Any student over the age of 16 that is enrolled in a Designated Educational Institution at a post-secondary level

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● Students that choose to continue their education after high school

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● A student who is partaking in full-times studies abroad that last for at least 3 weeks

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Here’s how you may not qualify for this specific tax credit:

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● If someone reimburses or pays for their tuition. For example, if a student’s employer offers to pay, this would not count as a tax credit, however, if their employer adds this to the student's income, it would

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● If a student takes high school equivalency courses to prepare for later post-secondary courses but attends university

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How to Calculate and Claim Tuition Tax Credits

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Let’s make one thing clear. Students may not be able to receive a refund but can either reduce or eliminate their tax bill especially if the tuition is more than the tax owed. Any unused credits can be transferred to a parent/grandparent or spouse/common-law or be carried over to a future tax year. To find out more information how to do so, click on this link

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Tuition Credit Documents

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T2202- Education & Textbook Amounts Certificates is a certificate that is issued to prove that a student has enrolled in an eligible courses throughout a proper time frame for the tuition tax credit.

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Disability Credits- To claim this specific tax credit, the student is required to be enrolled in a certified educational program and must submit a certified letter by a doctor stating the student’s physical or mental impairment. Students are to complete Schedule 11.

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Transferring Unused Credit Amounts

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You are able to transfer your unused tuition credits to your parents/grandparents and your Spouse/Common law partner. There is generally a $5,000 limit you can transfer of the tuition credits from the current year. To transfer you must sign and complete form T2202 and Schedule 11.

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You are able to carry forward any unused tuition credits that are not used in the current year.

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Generously, the CRA applies the available tuition amount carried forward every year in order to reduce your taxes to zero until it’s maxed out. The amounts of unused credit reduce tax payable automatically, so on behalf of our students, Thank you Canada!

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