Transfer Tuition Fees & Reduce Financial Stress! | CloudTax Tax Tips

Описание: Would you like to transfer some tuition fees of a student to reduce their financial stress? We are here to help Canadian students transfer their unused tuition amount to their parent, grandparent, spouse or common-law, or carry forward to a future year. Regardless of who paid the tuition, the student must first claim the fees and the education and textbook credit on his or her return. Once the student's tax payable is reduced to zero, leftover federal tuition amounts and federal and provincial education and textbook amounts can be transferred to a spouse, parent, or grandparent. The student can transfer to either parent, but you can only choose one. Ideally, you should choose the parent who has more tax payable to help them reduce their tax balance owing. Please remember not to transfer more than the parent needs to reduce their tax payable to zero. Instead, the student should carry the excess forward to a future year when he or she has a higher income and needs the additional tax credit. Parents cannot split the transferred amount between them. However, a student can only designate one person to receive the transfer. If the student is making a provincial transfer as well, the same person must be designated to receive both the federal and provincial transferred amounts, according to the Canada Revenue Agency. Similarly, if one parent claims the federal amounts, the other parent cannot claim the provincial amounts. However, a parent claim a transfer from one child and the other parent can claim from a different child as long as both children indicate on their paper T2202A slip who they designate to receive their transfer. If a student has significant Canadian dividend income (probably an unusual situation), it is possible that no transfer of tuition/education amounts will be allowed, even though the student may not need the entire tax credit. This is because the amount of the tuition or education tax credit used by the student is calculated before the dividend tax credit is deducted. The result may be that the entire tuition/education amount is utilized, but not the entire dividend tax credit. Unfortunately, the unused dividend tax credit cannot be carried forward. If the student has a spouse, in some situations the dividend income can be transferred to the spouse. This would also probably enable a transfer of part of the tuition or education amounts to the spouse.

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