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TUITION TAX CREDITS Explained for Canadian Students (T2202, TD1 & T1213 forms)
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- čas přidán 15. 08. 2024
- If you’re a student in Canada, you are likely eligible to receive the T2202 slip for the tuition tax credit. In this video I cover everything you need to know about tuition credits and how they can help reduce the taxes you owe.
𝗧𝗼𝗽𝗶𝗰𝘀 𝗖𝗼𝘃𝗲𝗿𝗲𝗱:
0:00 - Intro
0:21 - Tax Credit vs Tax Deduction
1:37 - T2202 Tuition and Enrollment Certificate
2:07 - TL11A, TL11C & TL11D Forms
2:39 - Eligibility for Tuition Credits
3:47 - How to Calculate your Tuition Credits
6:13 - T1213 & TD1 Forms: How to Reduce your Taxes
𝗢𝘁𝗵𝗲𝗿 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀:
STUDENT LOAN REPAYMENT: Everything you need to know: • STUDENT LOAN REPAYMENT...
If you’re an instructor who would like to access my slides, please reach out on:
Twitter: / stephanieyzhou
Instagram: / breakingbaddebt
𝗗𝗶𝘀𝗰𝗹𝗮𝗶𝗺𝗲𝗿: There are no conflicts of interest to disclose. These slides are for education purposes only. Any information, views, and opinions expressed are solely those of the presenter and are not a substitute for tax advice specific to your personal situation.
𝗧𝗼𝗽𝗶𝗰𝘀 𝗖𝗼𝘃𝗲𝗿𝗲𝗱:
0:00 - Intro
0:21 - Tax Credit vs Tax Deduction
1:37 - T2202 Tuition and Enrollment Certificate
2:07 - TL11A, TL11C & TL11D Forms
2:39 - Eligibility for Tuition Credits
3:47 - How to Calculate your Tuition Credits
6:13 - T1213 & TD1 Forms: How to Reduce your Taxes
𝗢𝘁𝗵𝗲𝗿 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀:
STUDENT LOAN REPAYMENT: Everything you need to know: czcams.com/video/toE540mM2pI/video.html
I have a question related to tax credit refund transfer. My friend is PhD graduate 2014. Contributed in 2023 to rrsp to the point is going to get refund 536.57 cad. Doing his tax through turbo tax. This year there is question would you like transfer of unused credit.
You have 1340 unused credit.
What amount of non refundable unused credits is transferring to you???
And there is a box to specify an amount.
Of left 0 what that mean or if specify the full amount 1340 would that be applied to this year of 2024 tax or it will be for 2025 tax year
So can I apply this credit to be used for 2023 so I can get more refund from the amount I contributed to the rrsp.?
Or it will automatically being used for the next tax year 2025.
So should he specify 0 or 1340 for the amount to be transferred?
Is this credit is going to expire at any point if not used.
And why it is not used automatically used this year
Thanks again for all ur video's
@@khaledfkry5541 are you asking if 1340 in unused tuition credit can be transfered to a family member/spouse or transferred to the following year? If you didn't transfer your tuition credit to a family member it can be carried over to a following year and don't expire. The maximum to transfer in tuition credit in a year is $5000. For more information: www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-32300-your-tuition-education-textbook-amounts/transferring-carrying-forward-amounts.html
@@BreakingBadDebt thanks for your reply I want to keep it for my use.
The question is i didnot see this credit in the previous years. Graduated in 2014.
I am using turbo tax all previous years.
Only this year I see this question.
To offer me this credit.
4 years ago ago I had to pay the government a balance around 1000. Why this credit was not used at that time.
I started to contribute to my rrsp to not owe a balance. And last year I got refund. Around 900.
This year I also contributed to my rrsp and the estimation of the refund is around 1000.
Is there away to enforce thus credit to be used this year so it work toward the balance and I will get more refund as a result of ne contributing to my rrsp. Or if I choose to transfer for next year. I don't need to contribute to my rrsp tat much for 2025
🤯How awesome can a person be, she is a doctor and has more knowledge about taxes than my friends studying accounting 😁
Dr. Steph, you explained it so clear, better than my accounting prof 😂😂
Thank you so much for this. The T1213 is a powerful tool for tuition tax credits that I and most people I know had no clue about.
This is possibly the smartest person alive. Good video.
Hello Dr. Stephanie,
I'm Terry, a student founder from Edmonton, Canada. I found your channel while searching on youtube, "Why is personal finance so sensitive," as I struggle with connecting with people to talk about their finance. As I came to the realization this morning that the topic of personal finance is susceptible, and the openness of people to chat with me, I would only be able to reach people if I reached out outside the traditional method.
So I had to be creative, and your insights and expertise with your audience blew me away. I am so impressed by your knowledge and what you are working towards that aligns with me.
I would love to speak with you if you have the capacity!
Terry
Hi Terry, thanks for reaching out - to answer your question, I think with the increased prevalence of scams these days, people aren't as willing to talk about their personal financial details with strangers. I've seen Tiktoks and short-form content where people go around asking about salaries or how much people are paying in rent. But for long-form interviews about someone's financial situation, this can cause hesitancy as it's a personal topic. Are you doing this as part of a research project? My suggestion is to obtain ethics approval from your university for human subjects research, ensure the interviews are confidential and that you develop a consent form for those you wish to interview about their financial situation.
@@BreakingBadDebt Hi Dr. Stephanie, thanks for the insights! My research is part of my startup project idea that I want to help people increase their financial literacy and have peace of mind that they will be okay for their retirement. I will send you an email where I can input in detail.
Hello, in your video it says that OSAP grants and school scholarships are usually exempt from tax for full time students.
1. So does this mean we don't enter OSAP grants/Scholarship amounts at all when filing taxes? Or we enter the info from the T4A for these along with the T2202, but it shouldn’t generate any taxes owed?
2. If the the combination of OSAP grant, entrance scholarships, and EAP funds taken from an RESP exceed the amount of what the tuition cost - would the OSAP grant/Scholarships still not be taxed and/or not factored in?
3. Would only the EAP portion be calculated for the purpose of determining if a student would pay any taxes?
I'll be filing the taxes myself (no accountant) so a little clarity on this part would be very helpful! Thanks!
Hello Dr.Steph. Thanks for sharing this information with us. It really helped me understand the basics.
I have a question though. This is my last term at the university, it ends in June. I was unemployed in 2023. I wanted to file for tuition tax credits. I paid about $25000 last year. How can I use the tax credit now? I am almost done studying at this university.
Also, I will be studying at a different college from September. Please tell me how to claim a tuition tax credit for 2023.
Thank you. Have a wonderful day.
Hello Dr. Steph, I graduated in Dec 2023 ( last year ) and I paid 92K in tuition ( including 2022, and 2023 ). I did not pay any tuition in 2024. My question is: I recently got a job... What should I enter in line 5 of the TD1 form ? Zero OR 92k ? I want to use my unused tuition credits in advance to reduce my tax paid.
T1213 form submission :
1. Is the total unused carry-forward tuition amount mentioned in the notice of assessment is my total tuition tax credit?
2. What supporting documents must I submit for only tuition tax credit?
Hello Doc, I have unclaimed tuition credit for 2022. Somebody told me that I should amend my 2022 tax return. I am just wondering if I still need to fill up the Schedule 11 form or just the amendment form? Can you please enlighten me. Thank you.
Is there a form for employer to apply the provincial tuition credit off your paycheque?
I had a question about transferring to a parent. Say I had $20,000 in tuition and can therefore claim $3000 (federally) + $1010 (Ontario), so a total tax credit of $4010. If I use $2510 to reduce my tax to 0, leaving a total of $1,500 tuition tax credit how much can I transfer to my parent? Can I transfer the $750 max, and carry $750, or I can't do the maximum and have to subtract the $2510 from the $5000 and then multiply the remaining by the percentages in order to see how much I can transfer, which would be $0...
My issue is related to the $5,000 tuition which I can transfer to a parent, because on the CRA website it states that the amount I can transfer is $5,000 minus the amount I used to calculate my own taxes. Also on section 118.81 of the ITA, it states how to calculate how much tuition tax credit can be transferred and references the formula which indicates that tax payable by me would be subtracted from the $750...
Useful video, thanks!
I can't find my canada training credit limit on 2023 NOA. What do i do?
Hi
Can you do this at any point?
For example I graduated in June 2023 and am starting work now in September 2023. I anticipate my first pay check in October 2023.
What is the best time to fill out this form?
And do I mail to the CRA or provide it to my employer?
Thank you so much, really helpful videos!
The best time to fill out the form is whenever you start working and earning a salary (which is also when you start paying taxes). Best time to fill in the form is when you start work. For me I provided it to my employer and when they provided me the paycheck the tuition credit was applied 'at source'. However I have also heard from others that employers ask them to send to CRA tax centres: www.canada.ca/en/revenue-agency/corporate/contact-information/tax-centres.html#sudb
I would check with your payroll office and ask what they prefer.
@@BreakingBadDebt thank you for the response! Does this process differ at all if you are self employed (sole proprietor)?
how long we can carry them forward
Hey Doc. Love the video. I'm also in Ontario so your video helped out a lot but I'm still confused. Can you help me with my situation?
I arrived here in Ontario last April 2023 as a student. I got a student (part-time) job since June 2023 and now I graduated from my school last December 2023. I found out that my TD1 form has the Tuition Tax Credits and I entered the full amount of my tuition, which is a mistake as mentioned in your video.
However, I did not feel paying tax less since I feel like I don't get taxed by my employer since I earn minimum wage for 20hrs/week.
I'm trying to fill up the 2024 TD1 form now with my new employer, and this time its a full-time job that's paying almost double the minimum wage. Should I claim the tuition credits in this TD1 form? Thank you
When you were earning minimum wage, you might be in a low tax bracket and were taxed very little or none at all (see personal tax brackets for your province here: www.ey.com/en_ca/tax/tax-calculators). Even when you're in a higher tax bracket, you should still claim the tuition credits because tax credits amount don't change with how much you earn, it just helps reduce the overall tax you have to pay and can carry over to future years or can be transferred to a spouse/family member who are paying more in tax.
I have watched your video it is so informative. I have recently received a letter from CRA that I am owing them more than 2000 dollar because my accountant used my tution credits more than the limit and now I’m owing money to CRA. I have applied my tax in March and now it august and they only gave me 15 days to pay the full amount. I am in big trouble. Could you please suggest me something that can help me in finding solution for this situation.
Thanks
Hi Steph,
It would be great if you could ans follow, i am super confused:
1. I did my study from ontario. My assessment notice say i have 32,393 federal tuition edu and txt book amounts. Why is there no mention of Ontario amount?
I had filed from accountant. Did he miss anything?
2. In T1213, what is to be mentioned in salary ?
- biweekly or yearly salary?
- current year (the year dated on form) or previous year? I believe its current year as i will be getting tax credit on current salary. Still confirming.
3. They have just mentioned attach supporting documents. However there's no mention of exact documents. The have provided link..but there too no mention of documents specifically required for tution tax credits. It just says in general that submit T4 (again since i am filing for this year, i dnt have this years t4, only previous years)
4. They have given you can submit online as well as offline. But online doesn't give option for tution tax credit related submissions.
So can you explain how to submit offline ? your video end on just filling. No info on how and where to submit.
Hi Rohit, I would first double check with your accountant if you have any questions as they did your tax filing and you're paying them for your services. I'll try my best to answer your questions though I'm not an accountant.
1. I would double check your NOA, it should indicate both the federal and provincial amounts especially if you got OSAP.
2. For me when I filled the T1213 - I put my total year's salary as I was just starting the job and didn't know the exact biweekly amount. Since I was new to the job, I put current year as in the previous year I was still a student and didn't have a salary.
3. I don't recall attaching supporting documents but I would check with your accountant what documents specifically they require.
4. I submitted the T1213 to my work's payroll department but at the bottom of the form it tells you where to mail or submit online.
Hi Dr Steph,
Thanks for sharing this information.
I have a bit of a unique situation. I never filed my tuition credits for the year 2011 - 2014. I got the T2202A form from my university which is now replaced with the T2202 form.
My question is, how does the filing and calculation process differ from the T2202 form? Can I still file for these credits using the Schedule 11 form for each study year?
Thanks!
Hi Fortune, I'm linking this article from the CRA that talks about carrying forward your unused tuition credits or transferring them to a family member to help them reduce tax. The process should still be the same even though the title is different but I would always double check with an accountant in case of any changes. www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-32300-your-tuition-education-textbook-amounts/transferring-carrying-forward-amounts.html
Hi please answer this question for me. I have money in my “unused federal tuition” available to carry over and I want to know what this means and if I can just claim it on my taxes this year. What is this carry over amount of unused tuition ? Thanksss
Hi Kayla, if these are unused tuition credits you can claim them this year or in future years (carry over) - I would also talk to your accountant when filing taxes to let them know of your unused tax credits.
I have Tuition Credits but I didn't mentioned to my employer initially. How Can I claim them at end of year.
Even if you didn't use your tuition credits at source on your paycheck, when you file your taxes this year, you can claim your tuition tax credits there. See this link for more info: www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-32300-your-tuition-education-textbook-amounts/completing-schedule-11.html
Hi, just a question. I am an international student so let's say if I paid $240,000 for the total tuition fee, then is the tax credit I will be getting only (240,000x0.15)+(240,000x0.0505) = 48,120? After I use up all 48,120, do I not get any more tax credits?
Hello! Yes so when you're no longer a student and stop paying tuition, you will stop earning tuition tax credits. After you use up your tax credits, then you are correct in that you won't get any more. The best way to check how much tuition tax credits you have remaining is by going on the CRA notice of assessment as described in 5:41 of the video.
Hello Dr. Steph. How do I transfer my 5k unused tuition to my husband? I have paid 19k on tuition but it won't allow me to type in 5000 in my schedule 11. thank you in advance
Hey, this is what the CRA says about how to do that “The student will complete and sign the transfer section of their tax certificate and provide the recipient of the transfer with a copy. The spouse or common-law partner would enter this amount in field 36000 of Schedule 2 and report this amount on line 32600 of their Income Tax and Benefit Return.” Source: www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-32400-tuition-education-textbook-amounts-transferred-a-child.html
Weird question, my daughter went to University this year, made a student's income (less than 20K), entered her tuition amount of less than 5K. Went from a refund of 4 figures to less than 500$.Any thoughts?
Usually you get a tax refund when your refundable tax credits exceed the tax you owe. It sounds like by working she owes more tax so those tax credits were applied to the income taxes. This isn’t a bad thing!
Hi I received my LMCC receipt. Just wondering which line of my tax return to claim this on? Thanks
Hi, for your LMCC it counts as a tuition tax credit and would be line 32300 of schedule 11. Source: turbotax.intuit.ca/tips/understanding-tuition-tax-credits-6549
@@BreakingBadDebt Thanks very much doc!
Pl advise, for international students paying university hostel residential fees, and also the tution fees, how the residential fee can be used for tax credit??? Is there any form or any other information.
Tx
Hey Sandeep, your residential fees can’t be claimed as a tax credit unfortunately. Source: studentlife.utoronto.ca/task/income-tax-information/#:~:text=Residence%20fees%20cannot%20be%20claimed,from%20paying%20municipal%20property%20taxes.
@@BreakingBadDebt tx for info. Is this info same for British Columbia province?
@@Sandeep-pv1kg Unfortunately rent is a personal expense and not claimable as a tax credit even in BC. Source: www.morningstar.ca/ca/news/185507/can-a-student-or-supporting-parent-claim-living-costs-as-a-tax-deduction.aspx
WHERE DO I SEND IT
Is your question where do you send your tax return? It would be to the CRA - they have the options for submitting your personal tax return here: www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/sending-a-tax-return.html
I have a child that is a student that is in university and we sometimes help with her 'rent'. The question 'what is your principal address on December 31 2023' had made a mess of the income tax last year as we have completed that with her 'home' address, (parents address qualifies for the northern Ontario energy credit. She has not return "home" over the summer months as she now has a part time job there. She tried to change her address with CRA, in her first year, but they then froze her 'account' and it took some time to have access back. That person told her not to as she was a 'student' in university.
So I guess the question is, what do you enter for your address - your home, where your parents are or home, where she lives for school?
I'm not an accountant so I would definitely check on this with an accountant or call CRA to double check. What I personally did when I was a student: I used the address where I could check the mailbox regularly for tax slips/other mail. This is because the tax slips often includes personal information like your SIN - so if you put a rental or student residence and you move out but the tax slips got mailed there or you didn't change your address with the CRA, you could either miss it or worse, someone else can open your mail and know your SIN.
Based on this article, it is easy to change your address if you move using the CRA My Account: www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2017/students-taxes-what-to-know.html
can we claim that education fee tax credits as a deposit to our bank account
The tax credits don't get deposited to your bank account, it will be used to reduce the overall taxes you owe. If they don't get used up they get carried forward to a following year when you do owe taxes.
@@BreakingBadDebt thanks for clarifying, our roommates are in serious discussion about the deposit 😅
@@chandrasekharmurari6627 did you even try to listen to her? ??
Hi there, I am filling out this form in June. Do I put the tuition I've paid so far this year or my estimated for the total year?
Hey Ravnit, do you mean the TD1 form? You would put your current years tuition. For the T1213 form, that’s for where you put your total accumulated tuition credits.
@@BreakingBadDebt hi there, yes I mean tuition. I’ve only completed one semester but I know my total for the year. Which number do I put? Also, is it mandatory for me to put my tuition on the form?
Hey Ravnit, even though you completed 1 semester I would but my total tuition for the year as the form asks for the tuition for that year.
@@BreakingBadDebt hi there, is it mandatory for me to put tuition or can I just put 0?
@@ravnitbrar3237 It would be more beneficial for you to put the tuition, putting 0 when you're actually paying tuition is not the true information.
So what the fuck exactly do we put on line 5 of TD1. You keep mentioning the mistake of putting total tax credit, so what exactly we need to put there. Like the tuition we paid for the terms of completed year? Or the tuition of the term we are studying currently??
Sorry for the swera im just so confused
Hey Kolia, on 7:02 of the video I said that you would put the tuition of the current year (2024) on that line if you're currently in school. So for example if you started fall term in Sept 2023 - Dec 2023 and paid tuition, then you are in winter term Jan 2024 - Apr 2024, you would put the tuition you paid in 2024 (Jan - Dec 2024). It doesn't have to be exact as you don't know your Fall 2024 tuition yet but an estimate will do. Hope this clarifies!
@@BreakingBadDebt thank you so much
hello how i get the money for the tac credit
Hi, you don't actually get any money going into your bank account for the tax credit but rather it reduces the taxes you owe. So it's indirectly more money for you as you're paying less in taxes
@@BreakingBadDebt but like my sister did get a cheque for it
@@cr69148 Maybe double check with your sister if it was from something different? The Tuition Tax credit is a non-refundable tax credit so lets say you didn't owe any taxes that year but had the tax credit, you wouldn't get any money back
@@BreakingBadDebt alr thank youuuu