Effective Jan. 1, 2017, only the tuition fee credit can be claimed on the
federal tax return, and then only if the total eligible fees paid exceed
$100 in the year. That happened in last year’s federal budget, when the
finance department removed the monthly education amount of $400 for
full-time students and $120 for part-time students, as well as the monthly
textbook amount, which was $65 for full-time students and $20 for part-time
students in prior years.
However, you will still see a reference to the tuition, education and
textbook amounts on Schedule 11 of the federal tax return. That’s because
students can continue to carry forward unused amounts of all three
components of this credit from prior years.
You may also recall seeing the tuition and education amounts on the
calculation of provincial tax credits in previous years. No province ever
had the textbook component. But now, some of the provinces have followed
the federal system in eliminating the monthly education amount. Here’s how
that looks for the 2017 tax filing year:
Education credits will continue for all of 2017 in the following provinces:
B.C., Alberta, Manitoba, Nova Scotia, Newfoundland, Prince Edward Island,
Northwest Territories and Nunavut.
The following provinces have made recent changes:
* Saskatchewan – eliminated Tuition and Education credits as of July 1,
* Ontario – eliminated Tuition and Education credits as of September 5,
* New Brunswick – eliminated Tuition and Education credits for all of 2017
* Yukon – eliminated Education and Textbook credits for all of 2017
In addition, you should be aware that the tax rules for claiming a
“full-time student” and “part-time student” under the eliminated education
amount will still be referred to when reporting the following provisions on
the federal tax return:
* Scholarship exemptions
* Child care expense eligibility and claims for higher-income spouses
* Eligibility for the Working Income Tax Benefits
* Exemptions from TOSI (Tax on Split Income) rules for minors
Students claiming moving expenses may be affected by the rules that exempt
scholarship, bursary, and fellowship income after 2006, when students also
qualified for the education amount. In prior years, moving expenses were
deductible against such taxable income, but after 2006, some scholarships
became non-taxable, which would mean that students could not claim moving
expenses, unless there was taxable income at their place of study.
As these claims are often audited, it’s probably a good idea to review your
history of claims for any post-secondary students in your family before
completing the 2017 tax return.
© 2018 The Knowledge Bureau, Inc. All rights reserved. Reprinted with
Evelyn Jacks is the founder and President of Knowledge Bureau, which
brings continuing financial education in the multiple areas of
specialization to advisors and their clients. She is the author of 52
books on tax and wealth planning. This article
originally appeared in the
Knowledge Bureau Report. Follow Evelyn Jacks on Twitter
@EvelynJacks. Visit her blog at www.evelynjacks.com.
Evelyn Jacks’ latest book,
NEW ESSENTIAL TAX FACTS: How to Make the Right Tax Moves and Be
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Notes and Disclaimer
The foregoing is for general information purposes only and is the opinion
of the writer. No guarantee of investment performance is made or implied.
It is not intended to provide specific personalized advice including,
without limitation, investment, financial, legal, accounting or tax advice.