Personal Finance

"Unused tuition and education amounts" ..?

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  • Jun 22nd, 2019 8:45 am
[OP]
Newbie
Jun 20, 2019
1 posts

"Unused tuition and education amounts" ..?

I'm a little confused and not sure who I should contact regarding information on this...

On my 2018 tax returns, I just filled out the information that was on my T4 into turbotax. On line 437 (box 20) of the T4 it stated "Income tax deducted: $6,718" (which is
the amount I got back when I filed my return).

I also got the message: "We changed your federal tuition and education amounts from $0 to $21,473. We also changed your British Columbia amounts from $0 to $24,064. We included unused federal tuition and education amounts of $21,473
from prior years and unused provincial or territorial amounts of $24,064 from prior years. Based on this assessment, you have unused federal and British Columbia tuition and education amounts of $15,942, and $4,926.
You can carry these amounts to later years."

And on my notice of assessment it broke it down to receiving:
$5,508 (federal credit back)
$1,808 (provincial credit back)

So here are my questions:
1. If it says my unused Federal and Provincial education and tuition amounts were $24,064 & $21,473 (respectfully), and then says "based on this assessment, you have unused federal and provincial education amounts of
$15,942 & $4,926 (respectfully). You can carry these amounts to later years." How did the provincial unused amount of $21,473 drop to $4,926 ... but I only recieved $1,808 back?
Based on receiving the $5,508 and $1,808 ... shouldn't my unused tutition and education amounts be at $18,556 & $19,665 if I subtract that what I received by how much unused credits I have?
2. $5,508 (federal back) and $1,808 (provincial back) is $7,316 total back. But I received $6,718, so did something happen to the other $600?
3. Do I truly have $15,942 & $4,926 to use as tax credit deductions in later years?

Thank you. Any help is appreciated."
1 reply
Deal Addict
Jan 2, 2015
1533 posts
528 upvotes
Toronto, ON
activeguard wrote: I'm a little confused and not sure who I should contact regarding information on this...

On my 2018 tax returns, I just filled out the information that was on my T4 into turbotax. On line 437 (box 20) of the T4 it stated "Income tax deducted: $6,718" (which is
the amount I got back when I filed my return).

I also got the message: "We changed your federal tuition and education amounts from $0 to $21,473. We also changed your British Columbia amounts from $0 to $24,064. We included unused federal tuition and education amounts of $21,473
from prior years and unused provincial or territorial amounts of $24,064 from prior years. Based on this assessment, you have unused federal and British Columbia tuition and education amounts of $15,942, and $4,926.
You can carry these amounts to later years."

And on my notice of assessment it broke it down to receiving:
$5,508 (federal credit back)
$1,808 (provincial credit back)

So here are my questions:
1. If it says my unused Federal and Provincial education and tuition amounts were $24,064 & $21,473 (respectfully), and then says "based on this assessment, you have unused federal and provincial education amounts of
$15,942 & $4,926 (respectfully). You can carry these amounts to later years." How did the provincial unused amount of $21,473 drop to $4,926 ... but I only recieved $1,808 back?
Because you only get a percentage. The federal amount is 15%, and applied to $8,122. The BC amount lower, and applies to $16,547.

Many credits work like this. Suppose you spent $10,000 on tuition. You get that at a 15% rate. It reduces your tax payable by $1,500, leaving you with no more credit. There is no way the government could afford to cut your taxes by $10,000 if you spent $10,000 on tuition. (It's actually more complicated than this. You used to get the education and textbook amount, based on the amount of time you spent at school, and not what you actually paid. This has been removed federally and in some provinces, but any credits already accrued remain.)

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