Tax Talk: Can I Write Off My Tuition?

Posted by Chelsea Noel on June 1, 2017 in Finance Healthcare Documentation Online Learning Scholarships & Sponsorships Work from Home

Can I Write Off My Tuition?

Many students have asked the question: can I write off my tuition? If you live in Canada, the answer is yes. At CanScribe Career College, your tuition is tax deductible. In fact, you can claim your tuition both federally and provincially. All you need is a T2202A form, issued to you by your post-secondary institution.

What is a T2202A?

The T2202A (Tuition and Education Amounts Certificate) is an official income tax receipt issued by qualifying educational institutions for tuition, education, and textbook tax credits that can be claimed on a personal income tax return. Your tax credit typically adds up to 15% of the total eligible fees paid to the institution.

According to Canada Revenue Agency (CRA) regulations, tuition and fees reported on a T2202A must exceed $100 and must relate to a course at the post-secondary level, or to training taken to obtain or enhance skills in an occupation.

Even if you have little to no income to report during tax season, it is still in your best interest to file a tax return. If you don’t claim your tuition, you are essentially walking away from “free money” from the government. While you may be subject to the government hounding you down for failing to report your income, they will not do so to advise you that you are entitled to receive money back by claiming your tuition. So it’s simply in your best interest to ensure you submit your T2202A. Who doesn’t love free money?

Let’s do some quick math:

You earn $30,000 in a year.

According to the CRA, you would pay 15% tax on income under $45,916.

This means you owe $4,500.

Now, what if you enroll in a course for $3,995?

Deduct $3,995 from $30,000 and you get $26,005.

That mean you are only taxed on $26,005…

So, you are now only taxed $3,900.75.

That’s a total savings of $599.25!

Tuition Tax Credit Tips:

  • You can also claim an education amount equal to $400 for each month you’re enrolled full-time and a textbook amount of up to $65 a month for full-time students.
  • Have you received any scholarships, grants, and bursaries? Fortunately, you won’t be taxed on them; you aren’t even obligated to report them on your tax return.
  • Have you used a student loan to pay for your tuition? You can still claim a non-refundable tax credit for the interest on the loan.

While there are other schools offering Medical Transcription courses, it’s important to ensure you are enrolling in a Canadian school if you want to receive a tuition tax credit. Schools based internationally, including American schools, will not provide you with a T2202A, meaning you won’t be able to write off your tuition.

When it comes to tax season, don’t forget to claim your tuition and take advantage of the opportunity to receive a tax credit for your studies! We all know that every dollar makes a difference.

For more information on how to access your T2202A form and how to file it, check out this blog post.