Personal Finance

re: Tuition tax deduction carries over?

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  • Feb 16th, 2006 3:17 am
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Member
Jan 27, 2004
414 posts
37 upvotes

re: Tuition tax deduction carries over?

Hey everyone,

I started doing taxes for my parents last year mainly just copying what our accountant was doing the previous years as nothing has changed, but unfortunately I started going to post secondary and forgot to transfer over my tuition tax deductions over to my parents. Do they carry forward to future years so I can transfer any remaining deductions from previous years for my parents? Do I have to use them for myself? Thanks.
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Deal Addict
Jan 21, 2003
1141 posts
11 upvotes
You have to use them yourself first, then you can transfer up to $5000 to your parents. It doesn't matter who uses them, the refund will aloways be the same on them as they are a tax credit.
Member
Jan 27, 2004
414 posts
37 upvotes
I see. That's up to $5000 for both parents right? I probably won't need any of it, but tuition was like $6000 last year, and the $400/month credit we get for living expenses. It'd be nice if I can transfer all of it to them. Does it carry forward indefinitely? I could just keep them all for myself.
Deal Addict
Apr 23, 2005
1633 posts
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Toronto
thelaw604 wrote:I see. That's up to $5000 for both parents right? I probably won't need any of it, but tuition was like $6000 last year, and the $400/month credit we get for living expenses. It'd be nice if I can transfer all of it to them. Does it carry forward indefinitely? I could just keep them all for myself.
You HAVE to use the tuition credits first. On the schedule 11, there's calculations where its basically you use as much tuition credits available so that your federal tax more or less equals your non-refundable tax credits (to reduce your federal tax to zero). Same goes for Ontario. Then you can transfer up to $5000 of current year's tuition to your parents ($5667 for Ontario). You can carryforward the rest of your tuition credits, but you cant use this year's tuition credits to transfer to your parents next year.
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Apr 20, 2005
1289 posts
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you still get the same amount, you can just claim it on yours and then GIVE the money to your parents if you want. They are not tax deductions, they are tax credits (at 16% of income), which means you can have no income for the year and still get the full tuition credit.
Member
Jan 27, 2004
414 posts
37 upvotes
I see. Thanks for the clarification. I guess the ones I forgot to transfer over last year will have to be used later for myself.
seshwan wrote:you still get the same amount, you can just claim it on yours and then GIVE the money to your parents if you want. They are not tax deductions, they are tax credits (at 16% of income), which means you can have no income for the year and still get the full tuition credit.
Tax credits, meaning I can get a cheque for any left over credits I don't use?

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