Students in Quebec generally have a source of income that allows them to finance their studies. Thus, they can benefit from credits and other forms of deductions. For more information, do not hesitate to call on JKB Services. This consulting agency offering accounting services in Montreal can give you the best credit advice.
The types of income that students receive
To be able to claim Tax credits and with deductions, you have to have income to deduct. Here are the different sources of income that students in Quebec can have.
- Exemption for scholarships, the amount of which depends on the situation of each student: This income from a scholarship, a development scholarship or a research scholarship can be reduced from $ 500 to $ 1,000.
- Part-time or full-time employment;
- Employment insurance and other benefits;
- Grant or scholarship, scholarship;
- Registered Education Savings Plan (RESP);
- Continuing Education Incentive Plan (RRSP);
- …
What are the credits and deductions offered to Quebec students? How much can a student transfer to a parent, grandparents or even spouse?
| Deduction / slip | Form where to enter the information in your declaration | Transfer to a parent or grandparent? | Transfer to my spouse? | If not transferred, can I carry forward to a subsequent year? | |
| Federal | Eligible tuition fees (T2202, box A)
Textbook amount (incl. On T2202) Mountain. unused from previous years (notice of assessment / federal reassessment) |
Annexe 11
Annexe 11 Annexe 11 T1-M/TP-348 |
Yes
Yes No No |
Yes
Yes No In some cases |
Yes
Yes Yes Yes |
| Quebec | Amount for post-secondary studies (RL-8, box A)
Tuition or examination fees (RL-8, box B) Textbook amount Mountain. unused from previous years (notice of assessment / prov. reassessment) Interest paid on bank loan (bank statement) |
Annexe S
Annexe T S.O. Annexe T Line 385 |
Yes, but only to the parent.
Yes S.O. No No |
No
No S.O. No No |
No
Yes S.O. Yes No |
Other deductions to be expected
Note that apart from the deductions mentioned above, there are other forms of deduction that students in Quebec should know:
Moving expenses: These expenses can be deducted in certain circumstances and for this, you must use the T1-M form for the federal return and the TP-348 form in the Quebec return.
Child care costs are also among the deductions to be expected. In fact, students can claim a deduction if they require child care services to attend studies in an eligible program. For those who have children in a private daycare, they can deduct the daycare expenses in both returns. In the case of a government-subsidized daycare, parents can claim the costs only in the Quebec declaration. The amount paid is clearly indicated in the RL-24 slip given to them.
The transit pass can also be deducted from the federal return.
For those who have already started paying off their student loans, they can deduct the interest paid on both of their returns.
What you need to know about tuition tax credits
Expenses related to post-secondary education are known to be heavy burdens for many students and their families. For this reason, those who study in Canada can claim various credits dedicated to students. With these credits, they can offset their expenses related to the purchase of textbooks or the payment of various study fees. Note that tuition fees are the most important expenses for students and that the existence of these credits allows them to meet them.
How to benefit from the credit for tuition fees?
All students over the age of 16 enrolled in post-secondary courses at an approved institution are eligible for the Canada tax credit. In general, students who continue their education in high school and then university are eligible for this credit. Educational institutions located outside Canada are eligible if the period of full-time study spent abroad is at least three weeks. In the event that the student has a source of income and his employer reimburses his tuition fees, he cannot take advantage of the tax credit. However, he can benefit from this credit if the employer includes the amount of tuition fees in his income. Students can also take advantage of the tax credit if their employer pays the tuition fees to their father or mother, but in their name.
What effects on taxes?
The Tuition Fee Credit is a non-refundable credit designed to reduce tax payable. To find out the amount of this credit, simply add up all the tuition fees and then multiply them by the lowest federal tax rate for the current tax year. Note that the 2012 federal tax rate was around 15%. In other words, students who have paid tuition in the amount of $ 2,000 can receive a tax credit of $ 300. As this is a non-refundable credit, the tax credit reduces the tax payable by the student to zero and generates no refund. In the event of unused credits, they can be carried over to another year or transferred in other cases.
The documents to be provided to claim the tuition credit
You should know that colleges, universities or other accredited institutions issue T2202A forms as certification. These documents confirm that a student has actually taken qualifying courses for an agreed period of time for the tuition credit grant.
Also note that a disabled student can claim full-time amounts even if they are only enrolled part-time, subject to presentation of a letter certified by a licensed physician.
Do not hesitate to call on Montreal tax services from JKB Services if you want to respect a professional approach to the tax declaration.