Tuition and Bursaries
- Tax credits for tuition are intended to cover post-secondary education and courses that are directly related to an individual's employment or business.
- An individual can receive a tax credit of 15% of tuition fees paid to specified educational institutions, 15% of $400 per month times the number of months of being a full-time student, and 15% of $120 per month times the number of months of being a part-time student.
- Any claimed tuition amounts in excess of what can be used on the tax return can be carried over, up to a limit of $5,000, to a spouse or supporting parent or grand-parent or carried forward to future years.
- Form T2202A, issued by the university, is required when claiming university tuition.
- Tuition paid to educational institutions outside Canada will qualify for the tax credit if it is a university, the individual has attended on a full-time basis, and the course was at least 13 weeks long.
- Fees are claimed on a calendar year basis, according to the months for which the course applies rather than payment date. For example, a course that runs from September 2010 to March 2011 would apply 4/7 of the fees to the 2010 calendar year.
- Scholarships and bursaries may be received by students to assist them in continuing their education. These are reported on T4A slips by the payer and must be reported as taxable income on the recipient's personal tax return.
- If tuition fees are paid by the student's employer, the tax credit is not available to the student, and even though the student has received a benefit from the employer, this benefit is not added to the taxable income of the student.
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Tuition and Bursaries | Simkover and Associates Chartered Accountants