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How does tuition carry forward in tax deductions?

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  • Jan 18th, 2006 8:37 pm
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[OP]
Deal Guru
Aug 2, 2001
13018 posts
3790 upvotes

How does tuition carry forward in tax deductions?

My GF is in University right now, and she'll have left over tax credits this year.

I've always had an accountant do my taxes, so I don't know how these typically carry forward.

Do all her unused credit carry forward? Is it just automatically tabulated by Revenue Canada (Like if she had any last year, do they keep a running total like RRSP contributions)?

Any explanation into the process would be great.
6 replies
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Sep 19, 2004
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Waterloo
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Apr 20, 2005
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tuition is a tax credit of 16% (not a tax deduction). You are allowed to carry it forward, but realistically there is no reason to carryforward this amount unless you want to give the government a free 1 year loan. Even if you have no income and claim no taxes, you are entitled to the credit.
Deal Addict
Sep 1, 2005
2469 posts
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any unused amount will be carried over. carried over amounts CANNOT be trasnfered to other people in later tax years. The credit can only be trasnfer in the tax year they are earned.

Just put the entrire amount from the form you get from the school, in future years refer to your previous assesment and enter the carried forward amount. There will be a federal and a provencial amount.
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Apr 20, 2005
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dark169 wrote:Just put the entrire amount from the form you get from the school, in future years refer to your previous assesment and enter the carried forward amount. There will be a federal and a provencial amount.

Don't listen to this guy. DO NOT CARRY FORWARD TUITION AMOUNTS. Just claim everything and take your money now. If you spent $5000 and went to school for 8 months full time, you get 16% back out of the $8200 ($400/month of full time study). That's $1312. If you invest that at a measly 6% you get $78.72 of interest. Don't give free loans to the government.
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Mar 11, 2003
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seshwan wrote:tuition is a tax credit of 16% (not a tax deduction). You are allowed to carry it forward, but realistically there is no reason to carryforward this amount unless you want to give the government a free 1 year loan. Even if you have no income and claim no taxes, you are entitled to the credit.
Actually, there is a good reason to carry it forward. Tuition is a NON-REFUNDABLE tax credit... so if she is making less than the tax-free amount (about $8000) then she would want to carry it forward.
Deal Addict
Sep 1, 2005
1645 posts
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Vancouver
unused tuition can be carried forward indefinetely

but always claim the max ... just follow schedules (federal and provincial) that are part of the return and it will tell you EXACLTY what to do and how much will be left for next year (revenue canada im pretty sure if you get the initial amount in right will calculate it all for you anyways)

if you dont need to use it all then it wont let you
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