If you attended a post secondary institution, paid interest on a student loan or have unclaimed education amounts (including former education and textbook amounts) in the last 5 years you may be eligible for reducing income tax owed.
Unclaimed tuition for Federal and Provincial amounts from the CRA notice of assessment.
Did you know that tuition, education, and textbook amounts spent allow you to reduce any income tax you may owe? In 2017, the federal education and textbook tax credits were eliminated. However, this measure did not eliminate the tuition tax credit, and it does not affect the ability to carry forward unused education and textbook credit amounts from years prior to 2017.
How it works
Your educational institution will provide you with a slip that has the total eligible tuition fees paid as well as the months you were enrolled either part-time or full-time. This tax slip is called: T2202A. If you were enrolled in post secondary education your institution should send you this form, or let you know where to access it electronically.
Many of my clients do not realize that their taxable income can be reduced if they have any education carry forwards and/or tuition amounts paid.
Interest paid on student loans
You may be eligible to claim an amount for the interest paid on your loan in 2019 or the preceding 5 years for post-secondary education if you received it under:
- Canada Student Loans Act
- Canada Student Financial Assistance Act
- Apprentice Loans Act
- Provincial or territorial government laws similar to the acts above
Only you can claim an amount for the interest you, or a person related to you, paid on that loan in 2019 or the preceding 5 years.
Remember, you can only claim an amount for interest you have not already claimed. If you have no tax payable for the year the interest is paid, it is to your advantage not to claim it on your return. You can carry the interest forward and apply it on your return for any of the next 5 years.
Is an RESP Tax Deductible?
Staying on the topic of education, you may have questions about RESP and taxes. Here are a few tips to remember.
- You can not claim a RESP against your taxable income, it is not like an RRSP
- But it is allowed to grow interest that is not taxable
- Also, the government matches the contributions at 20%
- Again a RESP is not tax deductible
Do you have questions about claiming education amounts on your tax return, or want to ensure you are maximizing your 2019 tax return? Drop me an email at email@example.com