How Tuition Tax Credit Works in Canada

Want to save money on your child's college costs? The tuition tax credit can help.

As a parent paying for college tuition, you're feeling the pinch—especially with today's slow economy and rising costs. But here's good news: you can get some money back through the tuition tax credit.

This credit cuts your taxable income using the tuition fees you've already paid.

What's the Tuition Tax Credit?

It's a non-refundable credit for parents of Canadian post-secondary students. When you pay for tuition and exam fees, you can claim 15% of these costs on your tax return, up to $5,000 per child.

Got multiple kids in school? Each child can transfer up to $5,000 in tuition amounts to you. With three children, you could claim up to $15,000 total in transferred tuition.

Who can get the Tuition Tax Credit?

If you're over 16 and studying after high school (full-time or part-time), you likely qualify. Here's what counts:

• In Canada: You must attend a recognized post-secondary school or a place where you're learning job skills, like a trade school.

• Outside Canada: Your courses need to be full-time and last at least three weeks.

• You must spend at least $100 per school.

How much is the credit worth?

The tuition tax credit equals 15% of your eligible costs for the 2024 tax year.

Calculating your credit

It's simple math - multiply your total eligible costs by 15%.

For example, if you paid $1,000 in tuition: $1,000 × 15% = $150 credit

This $150 reduces the tax you owe.

If you can't use all your credit, you can:

• Save it for future years

• Transfer up to $5,000 to a family member (like your parents)

What paperwork do you need?

Canadian schools give you a T2202 Certificate automatically. For foreign schools, you'll get a TL11A, TL11C or TL11D, but you'll probably need to ask for it.

Real Example

Jordan attends university and paid $5,000 in tuition for 2024. Her credit works out to: $5,000 × 15% = $750

She can claim this $750 when filing taxes, but only against tax she already owes.

What's not covered?

You can't claim:

• Transportation or parking

• Housing

• Textbooks

• High school courses

• Extracurricular fees

• Any tuition someone else paid for you

Scholarships and bursaries don't count against you.

Exam fees for licensing or certification

You can claim some exam fees on your taxes. Here's what works:

If you paid fees to take a professional or trade exam that's required for:

• Getting professional status recognized by law

• Becoming a licensed tradesperson

• Being certified to work in Canada

These fees might qualify for the tuition tax credit.

But watch out - extra charges over $250 don't count unless everyone taking the exam has to pay them.

Keep your receipt as proof. You'll need it at tax time.

How to claim the credit

1. Get your T2202 from your Canadian school (or request the right form from a foreign school)

2. Enter the amount on line 32300 of Schedule 11

3. If you have leftover credit, you can transfer up to $5,000 to family

4. Carry forward any remaining amount

Smart ways to use your tax refund

Got a tax refund coming? Consider stashing it in a KOHO account where you can earn high interest while keeping funds accessible for next semester's expenses.

Making the most of your Tuition Tax Credit

College is expensive, but the tuition tax credit makes it a bit easier on your wallet. Whether you're a student or a parent helping with costs, this credit can put money back in your pocket.

Remember the basics:

• You get 15% of what you paid in tuition

• Students can transfer up to $5,000 to parents

• Keep your T2202 form handy at tax time

Don't leave money on the table. If you paid for post-secondary education this year, make sure you claim this credit. And if your child is in school, talk to them about transferring some of their unused amounts to you.

Tax season doesn't have to be scary. With a bit of planning, you can make sure you get all the credits you deserve.