Principal Issues: Does part-time enrolment in two qualifying educational institutions qualify for the full-time education and textbook tax credit amount?
Position: Yes, provided the courses would otherwise qualify for the part-time credit amount.
Reasons: CRA's administrative policy is to allow the full-time education and textbook tax credit amount when a student is enrolled part-time at two or more qualifying educational institutions for courses that would otherwise qualify for the part-time credit amount.
XXXXXXXXXX 2010-036051 P. Waugh June 3, 2010
Dear XXXXXXXXXX :
Re: Education and Textbook Tax Credit
I am writing in reply to your email of March 16, 2010 requesting confirmation that you are eligible to claim the full-time amount for the education and textbook tax credit. You describe a situation where you were enrolled in two courses at the University of XXXXXXXXXX while taking two correspondence courses at the University of XXXXXXXXXX . All four courses were taken between September 1, 2009 and December 31, 2009. Each university issued a T2202A form showing part-time attendance.
Our Comments
Written confirmation of the tax implications inherent in particular transactions may only be provided by this Directorate where the transactions are proposed and are the subject matter of an advance income tax ruling submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Ruling, dated May 17, 2002. This Information Circular and other Canada Revenue Agency ("CRA") publications can be accessed on the Internet at http://www.cra-arc.gc.ca. However, we are prepared to offer the following general comments that may be of assistance.
In accordance with subsections 118.6(2) and 118.6(2.1) of the Income Tax Act (the "Act"), a student must be enrolled in a qualifying educational program as a full-time student at a designated educational institution to qualify for the education and textbook tax credit amount for full-time students. However, it is the CRA's practice to accept that the full-time requirement is met by a student who is enrolled in two or more institutions for courses that would otherwise qualify for the part-time amount. The individual claiming the credits must prove the student's enrolment by filing with the Minister a certificate (form T2202 or T2202A) issued by the designated educational institutions. Further support to substantiate that enrolment is for a single program of study and the required hours may also be required.
For more information on the Education Tax Credit, please refer to IT-515R2, Education Tax Credit, which is available on the CRA web site.
We trust these comments will be of assistance.
Yours truly,
Randy Hewlett
Manager
for Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch