Carry forward unused provincial tuition, education, textbook amounts

What’s in this article?

 

What is this?

Your provincial tuition, education, and textbook amounts roll into a non-refundable tax credit that lets you reduce your income tax liability. If your credit amount is more than the amount of income taxes you owe, you can use a portion of your credit amount to reduce the income tax you owe to $0.00, and you can carry forward your unused credit amount to future tax years. If you were a student in a previous year, you may have unused provincial tuition, education, and textbook amounts on your notice of assessment or reassessment from last year, which you can use to reduce the amount of tax you owe this year.

Note: You cannot transfer carryforward amounts from a previous year to a family member (parent, grandparent, spouse, or common-law partner). Only current year provincial tuition amounts can be transferred.

Each province has its own Schedule 11 that is used to determine the provincial tuition, education, and textbook credit amount. Tax credit rates for each province are different and are based on the number of months you were enrolled in a program. Only the Yukon and Nunavut offer a provincial textbook amount; the other provinces only offer provincial tuition and education amounts.

If you are filing a federal return, you will complete a federal Schedule 11 and a provincial Schedule 11.

If you are filing a Revenu Québec return, you will complete a federal Schedule 11 and a Revenu Québec Schedule T.

Note: If you move from province to province (except Québec), your provincial carry forward amount can’t be more than the federal tuition, education, and textbooks amount you carry forward.

 

Am I Eligible?

Your educational institution will provide you a tax certificate (slip T2202A for Canadians residing outside of Québec or slip RL-8 for Canadians residing in Québec) that lists the tuition you paid in the year and the number of months you were enrolled in a part-time or full-time program.  

If you were a student during the tax year and have an eligible tuition tax slip (T2202A or RL-8) and you don’t need to use all of your calculated tuition, education, and textbook credit to reduce your income tax payable, any unused amount can be carried forward to future years.

Note: You cannot carry forward amounts that you have transferred to a parent, grandparent, spouse, or common-law partner, and amounts that you have carried forward from a previous year cannot be transferred.

Canada Revenue Agency (CRA) says…

Schedule 11 must be completed and filed by you only. If you have transferred an amount to an eligible person, they do not need to send us a copy of your Schedule 11.

Complete the lines of Schedule 11 that apply to you based on the information provided on the tax certificate you received from your educational institution.

Depending on your province or territory of residence, you may also need to complete a provincial and territorial tax and credits form.

Even if you do not have to pay tax and you are carrying forward all or part of your tuition, education, and textbook amounts, you must file this form with your tax return so we can update our records with your unused tuition, education, and textbook amounts available for carry forward to other years. You must claim your tuition, education, and textbook amounts first on your own return. Complete Schedule 11 to calculate how much of this credit you will need to reduce your tax payable. You may need to use all of the credit, or just some of the credit depending on how much tax you owe.

If you did not need to use all of the credit, you can now choose one of the following options:

  • Transfer the amount: You can transfer an amount equal to $5,000 minus the amount you used to reduce your own tax payable. You can transfer the remainder to:
    • your spouse or common-law partner (who would claim it in field 360 of their Schedule 2, depending on their province or territory of residence)
    • your or your spouse's or common-law partner's parent or grandparent (who would claim it in field 324 of their Schedule 1)

To transfer the amount you must complete the transfer section of the certificate you received from your school.

  • Carry forward the amount: Your second choice is to carry forward the remaining amount so you can claim it in a future year. You must claim this amount in the first year you have a tax payable. Complete Schedule 11 to calculate the amount you have available to carry forward.

 

Revenu Québec says…

You can transfer to one of the individuals below the unused portion of the tax credit, provided that the transferred portion relates to your tuition or examination fees paid for the year (see the instructions for line 398.1 in the guide to the income tax return (TP-1.G-V):

  • your or your spouse's father or mother; or
  • your or your spouse's grandfather or grandmother (or the spouse of your or your spouse's grandfather or grandmother)

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

  1. Click the PREPARE tab.
  2. Click the YOUR YEAR IN REVIEW icon. You will find yourself here:
  3. Click the checkbox labelled I was a student.
  4. Scroll to the bottom of the page and click Continue.
  5. Click the STUDENTS icon. You will find yourself here:
  6. Under the CREDIT AMOUNTS section click the checkbox labelled Tuition, education, and textbook amounts carried forward from a previous year (Schedule 11).
  7. Scroll to the bottom of the page and click Continue.

When you arrive at the page for the Tuition, education, and textbook amounts carried forward from a previous year (Schedule 11), enter your information into the tax software.

Note: If you are not claiming your unused provincial tuition, education, and textbook amounts from previous years or are not transferring your current year provincial tuition amounts to a designated individual, H&R Block’s Tax Software automatically carries forward these amounts and shows them on your provincial Schedule 11 for the year. You will also be able to see your carryforward provincial tuition, education, and textbook amounts on your Notice of Assessment or Reassessment for the year.

 

Where can I learn more?