2 Reporting Tuition Paid on Your Tax Return
Information entered on the T2202—Tuition and Enrolment Certificate will be carried forward to the T1-Schedule 11 in the taxpayers’ tax return.
Eligible tuition reported on the tax return will provide the taxpayer with a non-refundable federal tax credit equal to 15% of the tuition amount paid. The tax credit can be used to reduce the federal tax liability to nil.
Students who are part-year residents of Canada can claim a tuition credit for amounts paid in respect of the period(s) of the year in which the individual is a resident of Canada.
Any tuition amount paid that is not required to reduce the tax liability can either be:
Carried Forward
Taxpayers must report the eligible tuition paid in the respective tax year. Any unused amounts can be carried forward and applied as a tax credit by the taxpayer in future tax years.
Transferred to a Spouse or Common-law partner
If the taxpayer does not require the tuition in the current year to reduce taxes payable, the taxpayer can transfer up to $5,000 of unused tuition paid in respect of the current tax year to their spouse or common-law partner who also resides in Canada. This will provide the spouse or common-law partner with a federal tax credit of up to $750 (15% of the tuition amount transferred).
The taxpayer must report any tuition amount transferred on their T1-Schedule 11. The spouse or common-law partner must complete the T1-Schedule 2 to report the amount transferred to be claimed.
Transferred to a Parent or Grandparent
Alternatively, the taxpayer can transfer up to $5,000 of unused tuition paid in respect of the current tax year to a parent or grandparent residing in Canada. This will provide the parent or grandparent with a federal tax credit of up to $750 (15% of the tuition amount transferred).
A taxpayer can only transfer a tuition amount if they do not require it to reduce their own federal tax owing. A taxpayer can only transfer a maximum of $5,000 of tuition fees in any tax year.
