Principal Issues: The taxpayer wanted information about federal tax recognition for students who pursue further education and their families.
Position: The Minister gave information on the tuition, education and textbook tax credits.
June 26, 2009
XXXXXXXXXX
Dear XXXXXXXXXX :
The Honourable Diane Finley, Minister of Human Resources and Skills Development, forwarded to me a copy of your correspondence addressed to your Member of Parliament, XXXXXXXXXX . In your letter, you ask what federal tax recognition is available for students pursuing further education and their parents. Please accept my apology for this delayed response.
To help alleviate the costs necessary to further their education, federal tuition, education and textbook tax credits are available to students who qualify. The education and textbook tax credits, in particular, were created to assist with some of the non-tuition costs of post-secondary education. Additionally, under certain circumstances, up to $5,000 of these tax credits can be transferred to supporting individuals, such as the students' parents. If a student has insufficient income to take full advantage of these credits, the student can transfer a portion of the credits to a supporting spouse, parent, or grandparent. The Income Tax Act allows this transfer to recognize that some students are not in a taxable position and are supported by their families.
Generally, a tuition tax credit is available for the amount of tuition paid for a year if an individual is enrolled in an educational institution in Canada, the courses taken are at the post-secondary level, and the fees exceed $100. For a full-time student in a qualifying program, an education tax credit of $400 may be available for each month of enrolment. For a part-time student, the education tax credit that may be available is $120 for each month of enrolment. As well, when the student qualifies for the education tax credit, a textbook tax credit of $65 per month for full-time students or $20 per month for part-time students is available.
If the student is enrolled in a qualifying program, the student's educational institution will generally provide the student with Form T2202A, Tuition, Education, and Textbook Amounts Certificate, specifying the tuition amount paid and the number of months during which the student was enrolled in the program. The Canada Revenue Agency (CRA) determines on a case-by-case basis if a particular student is eligible for the tuition and education tax credits. For example, the education tax credit is not available to a student who receives assistance in respect of his or her educational program from an arm's length third party, other than amounts such as scholarships or certain forms of government assistance.
You can find more information about these tax credits, including details on what is a qualifying program, on the CRA Web site at www.cra.gc.ca/students, or in Pamphlet P105, Students and Income Tax, available at www.cra.gc.ca/E/pub/tg/p105/ README.html. Similar provincial tax credits may also be available.
I appreciate the opportunity to respond to your concerns, and I trust that the information provided is helpful to you and your son.
Sincerely,
Jean-Pierre Blackburn, P.C., M.P.
c.c.: XXXXXXXXXX
Pamela Burnley
613-957-3498
2009-031828