Claim tuition fees and more!

Are you thinking of returning to school now that you’ve retired? Or do you have a student pursuing post-secondary studies in your family?

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Chartered Accountant Gary Katz, Partner, Logan Katz LLP Chartered Accountants in Ottawa, advises that you take advantage of tax savings while you burn the midnight oil. “You can claim a tax credit for tuition and related expenses, including library, lab and computer fees paid during the school year. Full-time students can also claim an education amount of $400 federally ($468 for Ontario taxes) per month, and part-time students can claim $120 ($140 for Ontario taxes) per month for each full or part month in attendance.” Is a family member helping you financially? Any unused portion of education, tuition and textbook amounts are transferable to a supporting spouse, parent or grandparent up to a maximum of $6,003 per person for Ontario taxes. (The federal limit is $5,000). Any remaining unused amounts can be carried forward and claimed by the student in a subsequent year. “While books, student fees, parking and equipment can’t be deducted,” says Katz, “a federal textbook credit of $65 per month can be claimed by full-time students, and $20 can be claimed by part-time students, eligible for the education tax credit.” Other potential tax-saving opportunities also exist – including a tax credit for interest on student loans, child-care expenses, transit passes, rent/accommodations and moving expenses. Brought to you by the Institute of Chartered Accountants of Ontario.