I receive so many emails and phone calls from parents about their children in College and University. It’s a whole new world out there! Unfortunately, parents cannot claim their children’s rent, moving expenses or tuition. Students must claim their own tuition, rent and moving expenses. In terms of tuition, a student, as long as they did not make more than $11,000 during the taxation year, can transfer up to $5,000 of their tuition and education credits to one parent. It is preferable if all tax returns, student and parents, are done at the same time by the same tax preparer to maximize deductions for all parties concerned. Either way, the student MUST claim their tuition on their taxes to determine the amount of the transfer PRIOR to a parent claiming the transfer on their income tax return.
A Student cannot deduct expenses like books, laptops or equipment you had to buy to take your course. When you receive your T2202 from your college or university, you will notice that there is a column B and C on the form showing the number of part-time and full-time months you attended school. For each month you attend school, you are given an education & textbook amount (Part Time: Education $120 Textbook: $20 / Full-Time: Education $400 Textbook: $65). These amounts form part of the tuition credits that can either be transferred to a parent, grandparent or spouse or accumulated to use in later years when the student works full time. Most institutions no longer mail these slips but must be download and printed through your student account. If you are attending a college or university that is not in Canada, they will provide you with a TL11-A which is the equivalent of the Canadian T2202A.
For more information on this topic, visit my website http://sauvetaxservices.ca/tax-tips-2/students/ Josée Sauvé
Sauve Tax Services