Back to University: Who Claims Tuition Fees

Evelyn Jacks

University bound? It’s an exciting time of life for both young adults and their parents, both of whom may be able to write off some of those expensive tuition fees.  What else is new is your tax filing status. A Tax Services Specialist can help answer your questions and a handy guide to the rules follows:

What’s the Tuition Fee Amount?  Post-secondary students may claim a non-refundable tax credit on their tax return, known as the Tuition Fee Amount. Better yet, if the student is not taxable, the claim for the tuition fee amount may be transferred from the student to the supporting individual – a parent, a spouse or a grandparent who supports the student. Under-used or unused amounts may be carried forward to future years when the student has more income and would, therefore, be subject to more tax (which could then be reduced by claiming the tax credit).

Tuition Fees Claimable. Students may claim the fees paid for courses taken in the tax year, which is the calendar year. To qualify, each tuition fee must be more than $100 and must be paid as follows:

• for courses at a post-secondary school level, paid to a university, college, or other educational institution in Canada
• paid to an educational institution in Canada certified by the Minister of Employment and Social Development Canada for courses to develop or improve skills in an occupation, if the student was 16 or older in that year
• for courses at a post-secondary school level, paid to a university, college, or other educational institution in the United States, if the student lived in Canada near the border throughout the year and commuted to the school
• or if the student was in full-time attendance at a university outside Canada, for courses that were at least 13 consecutive weeks long, and that will lead to a degree.

Courses not at post-secondary level.  Note that fees may be paid to post-secondary institutions above for courses not at a post-secondary level if the individual is 16 years of age or older before the end of the year and enrolled in the educational institute to improve or obtain skills in an occupation. Prior to 2016, these courses must have been at a post-secondary level, which generally meant the course would provide credit towards a degree, diploma or certificate and a pre-requisite to taking it would be completion of secondary school.

Eligible tuition fees include the following as well as any GST/HST charged for:

• admission fees;
• charges for use of library or laboratory facilities;
• exemption fees;
• examination fees (including re-reading charges) that are integral to a program of study;
• application fees (but only if the student subsequently enrolls in the educational institution);
• confirmation fees;
• charges for a certificate, diploma or degree;
• membership or seminar fees that are specifically related to an academic program and its administration;
• mandatory computer service fees; and
• academic fees.

Examination Fees.  Fees paid to an educational institution, professional association, provincial ministry or other such institution to take exams required to obtain a professional status recognized by a federal or provincial statute or to be licensed to practice in a profession or trade may be eligible for the tuition fee credit. Charges exceeding $250 are not eligible unless paid by all individuals taking the exam.   A separate receipt for the exam fee should be available to justify the claim.

NAME OF INSTITUTION: _______________________________ IT IS HEREBY CERTIFIED:

THAT the following examination ___________________________________ was taken by

________________________________ on _______________________

THAT, out of the total fees paid for the examination, the sum of ____________________ constitutes the amount of eligible fees paid for purposes of paragraph 118.5(1)(d) of the Income Tax Act

THAT the examination is required to obtain a professional status recognized by federal or provincial statute or to be licensed or certified as a tradesperson where that status, license or certification allows the person to practice the profession or trade in Canada

THAT no part of the above amount was levied for travel, parking, equipment of enduring value, or any charges other than examination fees and ancillary fees (for example, ancillary fees may include the cost of examination materials used during the examination, such as identification cards and certain prerequisite study materials)

Signature of authorized officer: _____________________________

Non-qualifying tuition fees. You should also be aware that certain costs cannot be claimed, specifically if:

• they are paid or reimbursed by an employer, where the amount is not included in the employee’s income
• they are paid by a federal, provincial, or territorial job training program where the amount is not included in income
• the fees were paid (or are eligible to be paid) under a federal program to help athletes, where the payment or reimbursement has not been included in income.

In addition, the following are not deductible as tuition fees: students’ association fees, medical care, transportation and parking, meals and lodging, goods of lasting value that the student will keep (such as a computer, microscope, uniform, or an academic gown), and initiation or entrance fees to a professional organization.

Filing Requirements. The claim for these credits originates on the student’s Schedule 11 Federal Tuition, Education, and Textbook Amounts.  Note that the federal education and textbook amounts were eliminated in 2017.

Claim the amounts transferred from a child to a supporting parent or grandparent on Schedule 11. If the transfer is to the student’s spouse, complete Schedule 2 Federal Amounts Transferred From Your Spouse or Common-law Partner.

Tax Receipts. The educational institution will issue an official receipt or Form T2202 Education and Textbook Amounts Certificate or Form T2202A Tuition, Education, and Textbook Amounts Certificate showing the amount of tuition paid.

Evelyn Jacks is President of Knowledge Bureau, a national designated educational institute focused on World Class Financial Education. For information about certificate courses leading to specialized credentials see www. knowledgebureau.com or call 1-866-953-4769.