Personal Finance

tax credits, must I claim all?

  • Last Updated:
  • Feb 15th, 2011 9:30 am
[OP]
Newbie
Jul 27, 2006
46 posts

tax credits, must I claim all?

Title says all. Do I have to claim all my credits? Like e.g. Tuition fees I have paid?

Thanks

edit: i meant credits....
17 replies
Member
User avatar
Sep 9, 2009
324 posts
35 upvotes
Toronto
You have no idea how taxes work, do you?

Please talk to an accountant.
Member
Sep 24, 2010
289 posts
10 upvotes
tax deductions are to help you. Not sure if you can actually not declare them but why would anyone not if it potentially helps lower your taxes.
Deal Addict
Nov 15, 2010
1959 posts
637 upvotes
Ottawa
To all those clever people who have replied to this thread, obviously the OP's intent is to save his tuition credits for future years when he has more income. I think you have to use tuition credits if you above the basic income exemption, but I could be wrong.
Deal Addict
User avatar
Oct 9, 2005
1100 posts
377 upvotes
Toronto
Quick search of the CRA site may be more helpful before posting to a deal hunting website's forums:
You can carry forward indefinitely [your tuition, education, and textbook amounts] and claim in a future year the part of your tuition, education, and textbook amounts you cannot use (and do not transfer) for the year. However, if you carry forward an amount, you will not be able to transfer it to anyone. You have to claim your carry-forward amount in the first year that you have to pay federal tax. Complete Schedule 11 to calculate the amount you can carry-forward.
Source: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... d-eng.html

And no, the title doesn't say it all, but some people are smart enough to figure out what your title doesn't say.
Intricated
Deal Fanatic
Jul 1, 2007
8536 posts
1692 upvotes
I thought tuition was a tax credit, not a deduction.

First couple times I did my own taxes, I actually felt motivated to tally up as much income as I could find, cause I wanted that line 150 number to be higher. I know that's so wrong, but it seemed like a high score game, when really it's more like golf.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Deal Addict
Mar 10, 2010
1515 posts
509 upvotes
If you don't apply your tuition tax credits, the CRA will do so automatically. If you have things like moving expenses though, the CRA will not apply them automatically and you'll lose out.
Member
Jan 26, 2011
233 posts
14 upvotes
Coquitlam
It's a credit. So doesn't matter when you apply it. The amount of tax you save would be the same.
Banned
Feb 11, 2011
9 posts
toronto
kyro wrote: Title says all. Do I have to declare all my deductions? Like e.g. Tuition fees I have paid?

Thanks

As my tax prof told me, tuition fees tax credit and text book tax credit should be claim as early as you can. the remaining amount of the unused tax credit can be carry forward to next year!
[OP]
Newbie
Jul 27, 2006
46 posts
Thanks for the input so far.

The reason I was asking is because when I do my taxes online with HR Block and don't declare my tuition(I graduated in May) I actually receive $1,000 more in taxes back. But if I do declare it, I get $1000 less...so I am rather puzzled to say the least.

I played around with the calculator a little and found out that it is dependent on how many months of full time schooling I attended. If it's 4 months or more I don't get that extra 1000, but if it is only 3, I do.

So in my case I would rather not claim that tuition tax credit, but is it legal?
[OP]
Newbie
Jul 27, 2006
46 posts
ugh nevermind...it just applies the Working income tax Benefit automatically when you fill in the tuition credit.

And since I must "not [be] enrolled as a full-time student for more than 13 weeks in the year" I don't qualify...damn

answered my own question.
Deal Fanatic
Aug 21, 2007
5877 posts
726 upvotes
Markham
kyro wrote: Thanks for the input so far.

The reason I was asking is because when I do my taxes online with HR Block and don't declare my tuition(I graduated in May) I actually receive $1,000 more in taxes back. But if I do declare it, I get $1000 less...so I am rather puzzled to say the least.

I played around with the calculator a little and found out that it is dependent on how many months of full time schooling I attended. If it's 4 months or more I don't get that extra 1000, but if it is only 3, I do.

So in my case I would rather not claim that tuition tax credit, but is it legal?
kyro wrote: ugh nevermind...it just applies the Working income tax Benefit automatically when you fill in the tuition credit.

And since I must "not [be] enrolled as a full-time student for more than 13 weeks in the year" I don't qualify...damn

answered my own question.

Yup Ive seen this question alot on here...glad you figured it out at least
Jr. Member
User avatar
Feb 13, 2011
195 posts
5 upvotes
kyro wrote: Thanks for the input so far.

The reason I was asking is because when I do my taxes online with HR Block and don't declare my tuition(I graduated in May) I actually receive $1,000 more in taxes back. But if I do declare it, I get $1000 less...so I am rather puzzled to say the least.

I played around with the calculator a little and found out that it is dependent on how many months of full time schooling I attended. If it's 4 months or more I don't get that extra 1000, but if it is only 3, I do.

So in my case I would rather not claim that tuition tax credit, but is it legal?
I think in the tax act, you must declare them as they are there. Because the CRA have the rights to check them tho your tuition credit forms for the years on claim on your file.
Deal Addict
Dec 28, 2006
2453 posts
116 upvotes
Saskatoon
Fish0912 wrote: I think in the tax act, you must declare them as they are there. Because the CRA have the rights to check them tho your tuition credit forms for the years on claim on your file.


Actually the ITA says "you may" claim a credit for..... virtually every credit there is.

From a practical standpoint CRA will apply your credits because it is in your best interest to do so.

The amount you get to carry forward is

credits you have - credits you would need to use to reduce your tax payable to zero

This calculation is independant of whether you use the credits or not. So theoretically you could let CRA apply your credits, object to the assessment and go to court and insist that they not be applied. The carry forward amounts would be the same no matter what. So effectively you would be going to Tax Court to force the CRA to not apply credits you are eligible for, resulting in you paying more tax than you need to.


Go right ahead, we have a national debt you know.
Conquistador wrote: One other thing you should know for future reference. If it is on the subject of taxes, listen to ghostryder. He knows his stuff.
Deal Addict
User avatar
Oct 29, 2002
2527 posts
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Ottawa
ghostryder wrote: Actually the ITA says "you may" claim a credit for..... virtually every credit there is.

From a practical standpoint CRA will apply your credits because it is in your best interest to do so.

The amount you get to carry forward is

credits you have - credits you would need to use to reduce your tax payable to zero

This calculation is independant of whether you use the credits or not. So theoretically you could let CRA apply your credits, object to the assessment and go to court and insist that they not be applied. The carry forward amounts would be the same no matter what. So effectively you would be going to Tax Court to force the CRA to not apply credits you are eligible for, resulting in you paying more tax than you need to.


Go right ahead, we have a national debt you know.
I believe the maximum amount of tuition credit you can carry over each year is $5000.

FS: Nothing
Deal Addict
Nov 26, 2005
3165 posts
331 upvotes
Vancouver
you can claim any amount from $0 to maximum allowed.
Member
Sep 24, 2010
289 posts
10 upvotes
TheGame wrote: I believe the maximum amount of tuition credit you can carry over each year is $5000.

Pretty sure the $5000 limit is only for tuition credit transfer. If you want to carry over for your own account, it is definitely more then that. For years that I was in university, I've had $10,000 credit or more per year.
Member
Dec 1, 2010
238 posts
22 upvotes
swknight wrote: Pretty sure the $5000 limit is only for tuition credit transfer. If you want to carry over for your own account, it is definitely more then that. For years that I was in university, I've had $10,000 credit or more per year.

I think you're right. Last year I carried forward about $14,000 but the maximum transferable to a spouse or parent is $5,000.

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