Don't forget your education expenses on your tax return.
Students enrolled at eligible Canadian post-secondary institutions, such as universities or certified trade schools, may be entitled to a tax credit for tuition fees and ancillary fees (e.g., library fees, lab fees, and computer service fees) paid for each calendar year. Full-time student fees at foreign universities may also qualify for credit. In addition, students may be entitled to a federal tax credit calculated on a $400 per month education amount for each full or part month of full-time attendance or a $120 per month education amount for each full or part month of part-time attendance. Education amounts for provincial tax credit purposes vary depending on the province - in B.C., the education amounts are $200 per month for full-time attendance and $60 per month for part-time attendance.
Students will also be able to take advantage of the federal textbook tax credit. The textbook tax credit will be calculated on a $65 amount for each month the student qualifies for the full-time education tax credit, and a $20 amount for each month the student qualifies for the part-time education tax credit.
Unused tuition and education amounts, including the textbook tax credit, are transferable to a supporting spouse, parent, or grandparent up to maximum of $5,000 per person per year. Tuition and education amounts that cannot be used in the current year, and that are not transferred, can be carried forward and claimed by the student in a subsequent year.
If your employer or your parent's employer paid your tuition, it is not creditable to you unless it is included in yours, or your parent's income.
Students may also be eligible for tax credits or deductions for other expenses, such as interest on student loans or moving expenses.
Information for Tax Tips is provided as a public service by the Chartered Accountants of British Columbia.