Income Tax FolioS1-F2-C2: Tuition Tax Credit
Series 1: Individuals
Folio 2: Students
Chapter 2: Tuition Tax Credit
The Canada Revenue Agency (CRA) issues income tax folios to provide technical interpretations and positions regarding certain provisions contained in income tax law. Due to their technical nature, folios are used primarily by tax specialists and other individuals who have an interest in tax matters. While the comments in a particular paragraph in a folio may relate to provisions of the law in force at the time they were made, such comments are not a substitute for the law. The reader should, therefore, consider such comments in light of the relevant provisions of the law in force for the particular tax year being considered.
Income tax folios are available in electronic format only.Application
This Chapter, which may be referenced as S1-F2-C2, is effective March 11, 2014 and replaces and cancels Interpretation Bulletin IT–516R2, Tuition Tax Credit.
The history of updates to this Chapter since it was first published on March 28, 2013 as well as any technical updates from the related interpretation bulletin can be viewed in the Chapter History page.
Except as otherwise noted, all statutory references herein are references to the provisions of the Income Tax Act, R.S.C., 1985, c.1 (5th Supp.), as amended and all references to a Regulation are to the Income Tax Regulations, C.R.C., c. 945, as amended and as promulgated under the Act.
Links to jurisprudence are provided through CanLII.Reference
Section 118.5 (also sections 118, 118.3, 118.6, 118.61, 118.7, 118.8, 118.81, 118.9 and 250, subsections 117(2), 252(2) and 56(3), paragraphs 56(1)(n), and 252(1)(b), subparagraph 6(1)(b)(ix) of the Act and Schedule VIII of the Regulations).Summary
When calculating Part I tax payable, a student may be able to claim the non‑refundable tuition tax credit. The purpose of the tuition tax credit is to allow students to reduce their income taxes by taking into account tuition fees paid for certain types of education. The amount of the tuition tax credit is determined by multiplying the lowest personal tax rate percentage (e.g., 15% for years after 2006) by the amount of eligible tuition fees paid in respect of the year. The unused amount of a student’s tuition tax credit may be carried forward to future years or be transferred to a spouse or common–law partner, or to a parent or grandparent of either the student or the student’s spouse or common–law partner, subject to certain requirements and limitations.
This Chapter provides the reader with an extensive review of the legislation and related provisions concerning the tuition tax credit and is intended for readers who have a general understanding of the Act. Individuals seeking a less technical overview of the legislation pertaining to students and the tuition tax credit may prefer to first review Pamphlet P105 – Students and Income Tax, the Students information page or the Video Series – Canadian students and income tax on the CRA website.
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