How to Take Advantage of the Tuition Tax Credit

First of all, you must keep in mind that the tuition tax credit is a non-refundable tax credit. This credit is granted for tuition fees paid to a certified educational institution, for either post-secondary or professional courses. You should also be aware that you can claim this non-refundable tax credit for tuition or exam fees paid in any fiscal year after 1996, as long as they have not been used previously to calculate a tuition or exam fee tax credit.

Many people mistakenly believe that all education-related fees are tax deductible. However, many fees are not eligible, including:

• transportation and parking;
• fees paid by your or your parent’s employer;
• fees paid for extracurricular student activities;
• the cost of goods of enduring value (such as a computer, microscope, uniform or gown);
• administrative penalties incurred when a student withdraws from a program or an institution.

Here’s what you should know to take advantage of the tuition tax credit

•  The tuition fees must be paid to a post-secondary educational institution in Canada or outside Canada recognized by the Canada Revenue Agency (CRA). Furthermore, to qualify, the fees you paid to attend each educational institution must be more than $100.
• You must be enrolled in a post-secondary or professional training program. Fees paid for courses to obtain skills for, or improve their skills in, an occupation are also eligible.
• Make sure you keep the official tax receipts or forms received from your educational institution, which will indicate the amount of eligible tuition fees that you paid for that calendar year. Please note that your receipts for tuition fees are available on the student portal of your post-secondary institution.
• Report the total eligible tuition fees paid to Canadian educational institutions on line 2 and total eligible tuition fees paid to foreign educational institutions on line 8 of Schedule 11 of your tax return.
• If you cannot use the total tuition tax credit in the year the fees were paid, you can carry forward the unused amount to claim in a future year or transfer it to a parent, a grandparent or a spouse.

Eligible tuition fees include the following:

•  admission fees;
• charges for use of library or laboratory facilities;
• exemption fees;
• examination fees (including re-reading charges) that are integral to a program of study;
• application fees (but only if the student subsequently enrolls in the institution);
  confirmation fees;
• charges for a certificate, diploma or degree;
• membership or seminar fees that are specifically related to an academic program and its administration;
• mandatory computer service fees;
• academic fees.

To learn more about the tuition tax credit as well as other tax credits you may be eligible for, please call us at  1 844-200-IMPO (4676). Our team will be happy to assist you. Making your tax season easier is our number one priority.