Tuition Tax Credits

CANADIAN POST-SECONDARY EDUCATION:

Tuition fees paid to accredited post-secondary schools and reported on a Tuition and Enrolment Certificate and Summary, also known as form T2202A, are claimable. The credit must first be claimed by the student and then, to the extent the deduction is not needed by the student, the remainder may be transferred to a parent/grandparent or spouse to a maximum transfer of $5,000 annually. Ensure your student signs the back of the tuition tax receipt indicating to whom they wish to transfer the deduction. Students must also file a tax return of their own, reporting the transfer.

We encourage post-secondary students to file a tax return for several reasons besides transferring tax credits to a parent or grandparent.  Tuition frequently exceeds the transferred amount – the difference carries forward indefinitely and can be claimed as a deduction by the student in the future, as they transition to working life. (This also applies when the tuition was paid to an accredited foreign education institution.)  As well, students typically qualify for tax credits such as the GST credit and Trillium Benefit (the latter in Ontario).  These credits can put cash in the bank account of a student.  It’s also a good time to begin to become acquainted with the tax filing system in Canada.

Form T2202A is available directly from your educational institution (usually found within the student’s online account) and is required for tax filing.

Note: Some programs operating at the secondary school level offer tuition tax receipts that may be claimed like post-secondary tuition fees. The school/program can let you know if your high school student is in a qualifying program. Examples: IB programs upper level, Royal Conservatory of Music Grade 8 and higher levels.

FOREIGN POST-SECONDARY EDUCATION:

Accredited schools outside Canada – the educational institution must complete form TL11A, found here: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/tl11a.html

A list of accredited foreign post-secondary educational institutions can be found here: https://tools.canlearn.ca/cslgs-scpse/cln-cln/reea-mdl/reea-mdl-1-eng.do?nom-name=inter

More information about studying abroad and taxes can be found here: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-32300-your-tuition-education-textbook-amounts/recognized-educational-institutions-outside-canada/info-students-educational-institutions-outside-canada.html

Scholarships and Bursaries

Scholarship and bursary income for elementary and secondary schooling is not taxable. Scholarships for full-time post-secondary students who have tuition fees paid in the same year are also non-taxable, where the courses lead to a diploma or degree.  Part-time students may exempt scholarships up to the extent of the tuition fees and materials costs. Above that, the amounts received will be taxable.

Research grants are taxable, and expense receipts should be kept as they may be deducted against the value of the grant received. It is important to separate expenses the grant covered from other business expenses.

Examination and Licensing Fees

Exam and licensing fees paid by students to obtain professional standing or certification as may be required to operate a professional practice or trade are, since 2011, included with the tuition fees and claimable as part of the Tuition Tax Credit.