Tuition Tax Assistance from CRA: T2202’s Available Now

Did you know that Knowledge Bureau is a private, educational institution certified by Employment and Social Development Canada (ESDC) to provide courses that develop or improve skills for those working in the tax, bookkeeping, accounting, and financial services industries? What this also means is that Knowledge Bureau students who have paid 2023 tuition fees in excess of $100 qualify for the tuition fee amount, and the T2202 tax slips to claim this are now available in your Virtual Campus. Here’s how to claim them:

To claim the non-refundable tax credit on your tax return, you’ll need to back it up with a completed Form T2202, Tuition and Enrolment Certificate.

Simply log in to Your Virtual Campus and go to the Virtual Registrar to access to your Form T2202. Tuition fees for all self-study courses, the CE Summits and the Distinguished Advisor Conference™ (DAC Acuity) are eligible. Typically, this credit is to be used by those who are not writing off training costs as a deduction against business income.  Note: this tuition fee credit is claimed in on a calendar year basis.  Credits claimed are reduced by any refunds received. 

In some instances, tuition fees paid will be deductible as follows:

The Canada Training Credit.  Certain taxpayers will qualify to claim this refundable tax credit if they have previously filed tax returns and meet certain age and income qualifications. 

See calculation below:

Tuition Fees = $3990

plus GST (5%) = $4189.50

CTC Calculation =
Lesser of 50% of Tuition = $2094.75 or $1000 (eligible per tax filings)

CTC Claim $1000 (Note
- if no taxes payable, this $1000 CTC is fully refundable when you file your
tax return)

Plus Claim a Tuition Amount for the Remaining Fees:

Tuition Credit $3189.50
($4189.50 less CTC claimed $1000 -T2202 required)

Tax benefit $765.48
($3189.50 x 24% - varies with province of residence)

Total Tax benefit (Tuition amount plus CTC) =
$1765.48 (42% of tuition fees payable)

Net cost of tuition $4189.50 - $1765.48 = $2424.02

As a Deduction from Business Income. Business owners may deduct the costs of training paid for themselves or employees who take Knowledge Bureau courses for continuing professional development.

 Students are referred to IT 357R2 for CRA’s interpretation of the Of specific note in the bulletin: training costs are not deductible as current expenses if they are capital expenditures. That is, they result in a lasting benefit to the taxpayer , like where a new skill or qualification is acquired (i.e. training as a specialist). In this case, students should consider using the tuition fee credit instead.

However, if training is to maintain, update or upgrade an existing skill or qualification, the related costs are deductible as a current expense. Examples of fully deductible programs: a professional development course is taken as required or recommended by a professional body to maintain professional standards, a tax course is taken by a lawyer or accountant who is qualified to do tax work, whether or not he or she has previously been actively involved in such work. Any portion of costs that are personal or unreasonable is not deductible.

Tax Deductibility by the Self-Employed. The receipt for your payment to Knowledge Bureau is your documentation for this expense claim.

Conferences.  Note that a maximum of two conferences per year can be written off as a business expense.  

Note:  Our courses are not considered a qualifying or specified educational program if the student receives, from a person with whom they deal at arm’s length, a grant, reimbursement, benefit, or allowance to take the program.

Bottom Line:  We appreciate your choice to study with us again in 2024! Consider further enhancing your credentials in 2024 and we invite everyone check out our new Educational Event Calendar for 2024. (hotlink).  Group rates and multi-course volume tuition fee reductions are always available.

Further programming options can be explored in your new Virtual Campus. If you’ve never studied with us before, we invite you to check out our programs for prospective students on our main website for a complete guide to 2024 online courses and live, virtual educational events.