School Planning: Tuition, Education, Textbook Amounts

The start of the school year is only a short month away, and now is a great time to think about the tax benefits of post-secondary studies in order to be organized come year-end.

The Tuition, Education, and Textbook Amounts credit is a combo of three great tax credits in one! Post-secondary students may claim the tuition amount, the education amount and the amount for textbooks.

Qualifying Programs

The educational institution will issue an official receipt or Form T2202A Tuition, Education, and Textbook Amounts Certificate showing the amount of tuition paid. Qualifying institutions in Canada include post-secondary institutions like universities or colleges or private designated educational institutions. Note: Knowledge Bureau is a qualifiying institution.

Universities outside Canada. These may qualify too. They will send the student Form TL11A Tuition, Education, and Textbook Amounts Certificate—University Outside Canada, TL11C Tuition, Education, and Textbook Amounts Certificate—Commuter to the United States or TL11D Tuition Fees Certificate—Educational Institutions Outside Canada for a Deemed Resident of Canada. Flying schools may send Form TL11B Tuition Fees Certificate—Flying School or Club.

Qualifying Course Duration

The required study period for claiming the Tuition and Education amounts as well as qualifying to withdraw Education Assistance Payments from an RESP is 13 weeks. However, if the student is studying abroad, that duration has been shortened to three consecutive weeks effective the 2011 tax year.

Eligible Amounts

• Tuition fees paid in excess of $100 to each individual qualifying post-secondary institution can be claimed. This includes admission fees, charges for the use of library or laboratory facilities, examination fees and ancillary fees that exceed $100 including the cost of identification cards and certain prerequisite study materials.
• Education amounts of $400 per month for full-time students and $120 for part-time students are possible.
• Textbook amounts claimable are $65 a month more for full time students and $20 a month more for part time students.

The student must make the claim on his or her tax return first, but if not taxable, or if the full amount is not needed, this credit may be transferred from a student to the supporting individual. Alternatively, the student can decide not to transfer the amount and instead carry any unused amount forward to be used in future years to offset income tax payable.

Click here for prerequisite information and tuition and funding supports for Knowledge Bureau programs.