As a student, you may be wondering what deductions you can make on your tax return. Can you claim the cost of textbooks? Can you transfer your credits to someone else?
What deductions can I claim?
There are three credits available: tuition, education, and textbook amounts. These are non-refundable tax credits that can be claimed when you are enrolled in a post-secondary institution in Canada. Schedule 11 of your tax return must be completed in order to claim these amounts.
The tuition amount is based on the amount paid for the year and must be over $100.
The education amount is based on the number of months you were in attendance. The credit is calculated as follows:
$ 400 x number of months enrolled full-time +
$ 120 x number of months enrolled part-time
Like the education amount, the textbook amount is based on the number of months you were enrolled and is calculated as follows:
$ 65 x number of months enrolled full-time +
$ 20 x number of months enrolled part-time
You are not allowed to claim any actual textbook expenses incurred. The textbook amount is meant to cover those expenses.
Can I carry forward my unused credits?
You can carry forward any unused tuition, education, and textbook amounts and use them to reduce taxes owing in a future year. You can carry forward these amounts until you have a tax payable amount to apply them against.
Can I transfer my tuition, education, and textbook amounts?
Instead of carrying unused credits forward, you can transfer your credits to someone else. However, you must use your credits to reduce your tax owing first before transferring subsequent credits. Once this has been done, you can transfer up to $5,000 to your parent, grandparent, spouse, common-law partner, or their parent or grandparent. Transfers can only be made to one other person and you must sign page two of the T2202A Tuition, Education and Textbook Amounts Certificate in order to approve the transfer.
What if my employer reimburses me for tuition?
No, reimbursed tuition amounts cannot be claimed.
What do I need to provide my accountant?
The T2202A Tuition, Education, and Textbook Amounts Certificate issued by your post-secondary institution must be provided. This form shows the amount of tuition paid and the number of months you were in school (full-time or part-time). As the education and textbook amounts are calculated using the information shown on this slip, receipts for textbooks are not required.
If you would like more information or have any questions, feel free to contact us at 780.466.6204, or click here to send us an email.
Thanks to Stephanie Kwan of KWB Chartered Accountants for providing this content