Personal Finance

Are we allowed to guesstimate tuition payments for 2019?

  • Last Updated:
  • Dec 21st, 2018 12:53 am
[OP]
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Apr 21, 2004
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Are we allowed to guesstimate tuition payments for 2019?

We've got a child enrolled in university. Because her school goes by trimesters, is it okay to multiple the upcoming January tuition by three and put this down on the TD1/ON1 forms to hand to my HR department? Or should I play it safe and only claim to trimesters?

She won't be using it as she isn't working while in school.


https://www.canada.ca/content/dam/cra-a ... d1-19e.pdf

12. Amounts transferred from a dependant – If your dependant will not use all of his or her disability amount on his or her
income tax return, enter the unused amount. If your or your spouse's or common-law partner's dependent child or grandchild will not
use all of his or her tuition amount on his or her income tax return, enter the unused amount.


Thanks.
10 replies
Newbie
Jul 14, 2008
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The most that she can transfer to you in a year is $5,000, so no need to put more than that. I suspect the actual amounts (tuition + books + full time credits) is more than that.
[OP]
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Oh, thanks. Didn't know that. :)

Just wanted to make sure I lower the tax withheld at source for these petty things haha.

Yes, actual amount is higher because of residence. Tuition will definitely drop when she moves out and secures a lease with her friends.
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Aug 26, 2007
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Residence fees don't count towards the tax credit
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Jan 27, 2007
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Probably not going to be a popular comment, but I'd rather not claim the tuition and leave it for you kid(s) to carry-forward and claim themselves once working.

Gives them a bit of a leg up in life. Also, it is worth the same no matter the income level as it is a tax credit, not a deduction.

Might be a different story if parent is footing the bill vs a student loan program.

OSAP put many a kid through school, while parents got big tax refunds and spent the money. Kids stuck paying both taxes and OSAP loan when they graduate. Like I said, not always the case, but that is more the norm than the exception.

EDIT - like someone above said, $5,000 federal is the max, but it is less for prov.
[OP]
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OSAP congratulated my child for funding approval. When she clicked somewhere to get the amount, she got a fat zero. So we have no choice but to provide educational assistance. Might turn into a promissory note if she doesn't endear herself to her chosen program though. :)

I'm so sorry for those students who are not going to get assistance from their parents and yet still not get much by way of loan.
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Dec 27, 2009
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dutchca wrote: Probably not going to be a popular comment, but I'd rather not claim the tuition and leave it for you kid(s) to carry-forward and claim themselves once working.

Gives them a bit of a leg up in life. Also, it is worth the same no matter the income level as it is a tax credit, not a deduction.

Might be a different story if parent is footing the bill vs a student loan program.

OSAP put many a kid through school, while parents got big tax refunds and spent the money. Kids stuck paying both taxes and OSAP loan when they graduate. Like I said, not always the case, but that is more the norm than the exception.

EDIT - like someone above said, $5,000 federal is the max, but it is less for prov.
I paid my kid's tuition at her college program (and that is the leg up I gave her) and you'd better believe I used the credit for my own taxes.
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Chickinvic wrote: I paid my kid's tuition at her college program (and that is the leg up I gave her) and you'd better believe I used the credit for my own taxes.
Totally understandable since you paid. As I mentioned in the post, I am with you on that one.

If I were a parent whose kid had loans paying for school and nothing was coming from me, thats when I would leave it for the kid to claim.
[OP]
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Does the student have to use any up to reduce tax owing, or can choose not to deduct anything and pass the entire $5k to the parent? I know it's a credit (16% or maybe it's now 15%)) and not a deduction so it probably makes sense for the parent to claim the entire thing especially if the student didn't earn much in 2018? Or are tuition credits refundable credits?

https://turbotax.intuit.ca/tips/claimin ... llege-5123

Your child can transfer up to $5,000 of the tax credit, less the amount used to reduce tax owing. So if she reduced her tax by $1,000, the most that can be transferred is $4,000. The tuition amount can be transferred to her parent, grandparent or spouse or common-law partner.
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Nov 19, 2004
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dutchca wrote: Probably not going to be a popular comment, but I'd rather not claim the tuition and leave it for you kid(s) to carry-forward and claim themselves once working.

Gives them a bit of a leg up in life. Also, it is worth the same no matter the income level as it is a tax credit, not a deduction.

Might be a different story if parent is footing the bill vs a student loan program.

OSAP put many a kid through school, while parents got big tax refunds and spent the money. Kids stuck paying both taxes and OSAP loan when they graduate. Like I said, not always the case, but that is more the norm than the exception.

EDIT - like someone above said, $5,000 federal is the max, but it is less for prov.
I'd rather claim it now and give it to the kid. Since it is a tax credit, it makes no difference. And money now, is better than money later.
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Aug 18, 2008
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alanbrenton wrote: Does the student have to use any up to reduce tax owing, or can choose not to deduct anything and pass the entire $5k to the parent? I know it's a credit (16% or maybe it's now 15%)) and not a deduction so it probably makes sense for the parent to claim the entire thing especially if the student didn't earn much in 2018? Or are tuition credits refundable credits?

https://turbotax.intuit.ca/tips/claimin ... llege-5123

Your child can transfer up to $5,000 of the tax credit, less the amount used to reduce tax owing. So if she reduced her tax by $1,000, the most that can be transferred is $4,000. The tuition amount can be transferred to her parent, grandparent or spouse or common-law partner.
IIRC, the dependent / child must use up all the tuition credit as possible, until they have no taxes owing. After that, they will be able to transfer the credit to you. However, it's only this year's amount that can be transferred. (So if the previous year they had no need to claim + didn't transfer to you, then it would've been carried over to this year)

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