If you or your child or spouse have attended university you should know that there are a the large tax breaks available to students.
Those who struggle with tuition fees and could benefit from the tax breaks the most are often the ones who are unaware of them or unaware of how much they could help financially. On average with tuition, education and textbook tax credits combined can lower a student’s tuition by a third, roughly $2000.
If you are a student, a parent of a student or soon to be a student, who has not yet looked into the benefits of tax credits for post secondary students, now is the time to do so.
|
Credit |
Worth |
Transferable? |
Carry Forward? |
| Tuition Tax Credit | 15% of eligible tuition and ancillary fees | Yes, to parents, grandparents, spouses or common law partner | Yes, indefinitely, but only by student |
| Education Tax Credit | Can claim $400/month (full-time) or $120/month (part-time). Credit is worth 15% of total. | Yes, to parents, grandparents, spouses or common law partner | Yes, indefinitely, but only by student |
| Textbook Tax Credit | Can claim $65/month (full-time) or $20/month (part-time). Credit is worth 15% of total. | Yes, to parents, grandparents, spouses or common law partner | Yes, indefinitely, but only by student |
| Student Loan Tax Credit | Students and former students can claim a 15% tax credit on student loan program interest paid in current year and previous five years. |
No |
Yes, up to five years |
Even more credit in this area. How? For the year 2014 and later years, the calculation for the family tax cut has been revised to allow unused tuition, education, and textbook amounts transferred from a spouse or common-low partner.
For more information on how to claim these credits and save money during your university and college years, contact us at info@cpa4toronto.com for help!
Nicole Dronca, CPA, CGA
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