Claiming the Monthly Education Amount

Today certain tax credits have been enhanced to help both full-time and part-time students while they are studying, including the monthly education amount. Only one education amount may be claimed for each month: the full-time amount or the part-time amount.   Here’s the criteria behind the numbers students will find on their Form T2202A, required to make the claim:

A full-time education amount may be claimed for each whole or part month in the year that the student was enrolled in a qualifying educational program (see definition below) at a designated educational institution and the student was enrolled full time, was enrolled part time and qualified for the Disability Amount, or enrolled part time because of a mental or physical impairment.

A qualifying educational program is a program that lasts at least 3 consecutive weeks and requires a minimum of 10 hours of instruction or work in the program each week (not including study time). Instruction or work includes lectures, practical training, and laboratory work. It also includes research time spent on a post-graduate thesis.



A program is not considered a qualifying educational program if the student receives, from a person with whom he or she deals at arm’s length, a grant, reimbursement, benefit, or allowance for that program.

However, receipt of a scholarship, fellowship, bursary, or prize received, or any benefit received under the Canada Student Loans Act, Canada Student Financial Assistance Act, or the Act respecting financial assistance for education expenses of the Province of Quebec does not disqualify the education program.



But the following will not disqualify the student from the full time education amount:  a  scholarship, fellowship, bursary, or prize received, or any benefit received under the Canada Student Loans Act, Canada Student Financial Assistance Act, or the Act respecting financial assistance for education expenses of the Province of Quebec.

A part-time education amount may be claimed if the student does not qualify for the full-time amount but has spent a minimum of 12 hours in the month on coursework. A part-time education amount may be claimed for each whole or part month in the year that the student was enrolled in a specified educational program at a designated educational institution.  Students in Knowledge Bureau’s educational programs can qualify for this criteria.

After 2003, a program taken by the student in connection with the student’s employment duties, even if that student receives income from that employment, does qualify for these purposes, provided only that the employer does not reimburse the tuition cost.

Age limitation for education credit. Students who are under 16 at the end of the year may claim the education amount only for courses taken at the post-secondary level.

Bonus: Amount for Textbooks. The 2006 Federal Budget introduced a non-refundable tax credit that recognizes the cost of textbooks. The credit is calculated based on the number of months of full-time or part-time attendance as certified on Form T2202A.

The textbook amount is $65 per month for full-time attendance and $20 per month for part-time attendance. The credit is, in fact, an increase in the Education Amount and the requirements for this credit are identical to those of the Education Amount.

Consulting with a DFA-Tax Services Specialist is a good idea now, as students go back to school, to plan the full and adequate use of these credits by students and their supporting individuals.

Evelyn Jacks is President of The Knowledge Bureau, a national designated educational institute focused on excellence in financial education for financial advisors and their clients. For information about certificate tax, retirement and investment courses see www. knowledgebureau.com or call 1-866-953-4769.