The Companion Advisor:
Taxes & Estates
Back to School: Tips to Maximize the Tuition
and Education Tax Credit
By Evelyn Jacks,Winnipeg, MB
A Companion Advisor article
Those who are university bound are likely biting the bullet on the cost
of expensive tuition and books, but the tax man may come to your rescue
this year. How can incomes from summer jobs be leveraged from a tax viewpoint?
It's important to know the rules, according to Evelyn Jacks, author of
Essential Tax Facts.
"Post-secondary students must claim the tuition and education amounts
on their tax returns, but if they are not taxable, the amounts may be
transferred to a supporting spouse, parent or grandparent, or carried
forward to future years for use by the student," says Jacks. "To
qualify, the tuition fee paid to each designated educational institute
must exceed $100."
Eligible tuition fees include:
- Admission charges
- Exam fees
- Academic fees
- Cost of books--but only if for correspondence courses
- Athletic and health services fees paid if required by all students;
if not the amounts claimable are limited to $250.
Not deductible are student association fees, medical care, transportation
and parking, computers or entrance fees to a professional organization
Education amounts are claimable for full or part-time students ($400
per month or $120 a month respectively) but a qualifying educational program
for full time purposes must last at least three consecutive weeks and
have a minimum of 10 hours of instruction or work each week. For part
time students, the program must last at least three consecutive weeks
and have 12 hours of instruction per month.
Evelyn Jacks is the author of 30 best-selling books
on the subject of personal income taxation, and the President of Knowledge
Bureau, Inc., Canada’s leading professional education publisher in
the tax and financial services industry, specializing in delivering courseware
and information services to knowledge-based practices. For more information
call toll free 1-866-953-4769 or visit www.knowledgebureau.com.
Notice:
Fiscal Agents Financial Services Group are not engaged in rendering tax,
accounting or legal professional services or advice. The comments in this
article are not intended, nor should they be relied upon, to replace specific
professional advice. Before acting on material contained herein. Readers
should seek advice that is appropriate to their personal circumstances
from a professional advisor.
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