Hi Hutcheson & Co. LLP,
I have been paying for my child’s University and was wondering if I can claim the tuition on my tax return?
Thanks for the question.
Yes, you can claim up to $5,000 minus the amount required to reduce your child’s taxes payable to zero.
The CRA requires that the student must claim all the tuition, education, and textbook amounts first on their own return. So the higher your child’s income, the less he/she will be able to transfer to you.
The student can then choose to transfer an amount equal to $5,000 minus the amount needed to reduce their own taxes payable to zero (as mentioned above) and carry forward any remaining amount and claim it in a future year.
The student can transfer the amount to:
- Their parents or their spouses or common-law partner’s parent or grandparent. The parent or grandparent would claim it in field 360 of Schedule 2 of their return.
- Their spouse or common-law partner. The spouse or common-law partner would claim it in field 324 of Schedule 1 on their return.
Any remaining tuition amount that has not been claimed or transferred at the end of year will be carried forward on the student’s tax return. This carry forward balance cannot be transferred and must be used by the student in future years.
If you require any further assistance, please contact one of our experienced professionals.
Rob Brown, CA