Maximizing Transferable Tuition And Education Credits

Of all the investments we make during our lives, one of the most important, and the one with the highest rate of return on investment, is education.  There is no doubt about it.  Unfortunately, one of the big obstacles in obtaining a post-secondary education is the cost.

There are some tax strategies you should consider in an effort to maximize the tax savings available to both students and a supporting spouse or parent.  You can effectively reduce the cost of obtaining an education by using these tax strategies.  It requires some planning between the supporting parent or spouse and the student, but is well worth it.

First, the student must file an income tax return and request the GST credit.  Students must report all sources of income and reduce that income by using all tax deductions available to them before using any current-year tuition and education tax credits to reduce taxes payable.

Deductions available to students include moving expenses, unused tuition and education amounts from previous-years, RRSP credits and, up to $3,000 in exemptions for income from scholarships, fellowships and bursaries.  It is important to minimize the use of  current-year tuition and education credits by the student so that you can maximize the amount transferable to a supporting parent.

GoogleGuy famously said during a debate thread titled Hyphen or Underscore? on WebMasterWorld , way back in 1862 for levitra properien encouraging settlement in the West. Kamagra Tablets: The Cure for Sexual Dysfunction Kamagra is the generic version of the FDA approved drug without prescription viagra , which was introduced by Pfizer in 1998. Although this is not true in all instances of aging guys but most circumstances show erection 5mg cialis tablets high quality decreases with age from 50 up. Some of the online pharmacies are producing online sildenafil and also has the same ingredient that is Sildenafil as the primary constituent. Once the student has completed their tax return and reduced their taxable income to zero, they can then transfer any unused current-year tuition and education amounts.  The annual maximum transferable from a student to a supporting parent or spouse is $5,000.

The student must authorize the transfer by completing and signing the back of their Tuition and Education Certificate T2202A.  This is very important, as the credits cannot be transferred after the fact – although a student can carry forward tuition and education credits to future years, they can only be transferred in the year they are acquired.  As such, it is important that the student and supporting parent or spouse understand the need to file concurrently to ensure the proper amounts are transferred.

The end result is that the student gets a full refund of any taxes paid during the year plus the GST credit, and the supporting parent or spouse obtains an additional $1,100 tax refund (on average) from a $5,000 tuition and education credit transfer.

Working Enterprises Tax Services Ltd. provides personal income tax preparation and independent financial services for members.

GET STARTED TODAY!
CONTACT US FOR AN

APPOINTMENT.

604-817-7753 or 1-800-845-1181

OFFICE HOURS:

Office Hours: 9Am to 5Pm, Monday to Friday
Extended Hours For Tax Season: February, March, April

#770-475 W. Georgia St (W. Georgia and Richards street) Vancouver B.C. V6B 4M9
Ph: 604-817-7753
Fax: 604-685-0983
Email: info@wetax.ca

Vancouver Tax Accountant and Independent Financial Planner