Helping your kids prepare for the future is a big investment. But parents with children attending a university or college might not have to wait for the satisfaction of hearing their child has a job to see a return.
If your children didn’t earn much money this year through work study or other jobs, they might be able to transfer some of their tax credits to you. It’s a little known fact that students can transfer up to $5000 in tuition credits to a parent or guardian as long as they don’t need them to lower their own tax payable to zero.
Ask your children about their T2202/A slips – the slips they receive with eligible tuition costs. T2202/A slips need to be included in students’ tax returns.
Another little known fact is that students can only transfer current year tuition tax credits and any carry forwards must be used on their own tax returns. This means only credits from this year can translate into savings for parents on 2009 returns.
Being a parent is a full time job, and you should receive the compensation due. Parents are reminded to figure out what they might earn in tuition tax credits in time for the April 30 tax filing return deadline.