The Tax Blog for Smart Canadians

Tuition tax credit

The tuition tax credit is a non-refundable credit for the tuition fees paid to post-secondary schools during the year. The credit itself amounts to 15% of eligible tuition fees. If you do not need the full credit to bring your income tax down to zero, you can carry forward the remainder for use in future years.

Expert tip: As we just mentioned, the tuition tax credit can be carried forward to future years if you don’t need all of it to reduce your income tax to zero. This means that you can “bank” your credit and use it in future years when you might need it more. If you were enrolled full-time during your studying years and you are just starting your career, it is likely that you have a portion of the tuition tax credit carried forward (unless you transferred your excess credits to your parents). Go to the CRA’s My Account portal or check your Notice of Assessment to find out how much.

Canada training credit (CTC)

The Canada training credit is a refundable tax credit you can claim for the tuition fees paid to post-secondary schools during the year. To claim the CTC, you must meet all the following conditions:

• You were resident in Canada for all of 2021
• You were at least 26 years of age and less than 66 years of age at the end of the year
• You have a Canada training credit limit (CTCL) for 2021 on your latest notice of assessment or reassessment for 2020

To create a CTC limit, you need to have gained what the government considers “earned income” (working income) of over $10,342 in the prior year.

Student loan interest credit

If you took out a student loan to pay for your post-secondary education, you can claim a non-refundable tax credit for the interest you paid on your student loan. You can claim the interest paid for the current year or the preceding 5 years. The credit you can claim is 15% of the interest charges.

Moving expenses

If you had to move to another location to pursue your post-secondary studies full-time and you are receiving scholarship/bursary income, you can deduct your moving expenses. If you moved for a dual purpose (e.g. to attend a post-secondary educational institution full-time and to gain employment), you can claim your moving expenses against your employment income.

Scholarship and bursary income

If you receive scholarship and bursary income for your post-secondary studies, this income is not taxable if you are considered a full-time qualifying student for 2020, 2021 or 2022. Even as a part-time student, you can claim an exemption of $500 plus the costs of program-related materials. It pays to find out if you are eligible for a scholarship !

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