2023 TurboTax® Canada Tips

Tuition Tax Credits in Alberta

TurboTax Canada
March 22, 2021 | 3 Min Read

Large group of students at lecture hall. Focus is on mature teacher assisting African American female college student.

If you or your child is enrolled in university or college, tuition tax credits are a way to help to alleviate the high costs of tuition.

Federally, there are tuition tax credits that you might be eligible for, but there are also additional tuition or education tax credits for many of our provinces.  For more on the Federal tuition tax credits, read our article here.

Overview

Tuition tax credits in Alberta have allowed many students to make the most of their money spent on education tuition.  While there is a limit to how much tuition can be claimed for the tuition tax credit, tuition amount transfers are a lesser-known but highly valuable way to maximize tuition tax credits in Alberta.

With the 2020 budget, the tuition tax credit has been eliminated, therefore many students will see a decrease in the ability to claim tuition tax credits in Alberta for this coming year. That said, all years previous to 2020 will be eligible for tuition tax credits in Alberta, if the student meets the qualifications.

How to Qualify

There are a number of qualifiers that students must fulfill in order to qualify for tuition tax credits (don’t worry, most students are eligible).

Enrolled at A Qualifying College or University

There are a few other factors that determine if tuition tax credits will be awarded based on the qualifying university, especially when students are studying abroad. Most commonly, Canadian students who qualify for tuition tax credits attend a university, college, or other educational institution in Canada for post-secondary courses.

Professionals will also have the opportunity to be a part-time student as part of their career advancement. In this case, the educational institution in Canada would need to be certified by Human Resources and Skills Development Canada as a course (or courses) to acquire or improve work skills.

When Does Tuition Not Qualify?

Generally, a part-time or full-time student would not qualify for tuition tax credits if:

Claiming Tuition for Tax Credits in Alberta

Obtain your T2202 tax slip from the college or university. This form is necessary when filing your tax return, especially when a student it looking to submit a claim for tuition tax credits in Alberta. This form will allow the student to claim a federal and provincial tax credit for the amount of tuition stated on the T2202 tax slip.

In order to complete the claim for tuition, the student must file their income taxes using federal Schedule 11 as well has for AB (S11).

Transferring Tuition Amounts

While a student can claim tuition tax credits on their own taxes for the year, there is also the opportunity to transfer all or part of the unused tuition and education amounts to a parent, grandparent, spouse or common-law partner.

Here are the steps to transferring tuition for tax credits:

Carrying Forward Tuition Amounts

 While Alberta’s 2020 budget has eliminated the education and tuition tax credits, if tuition credits still remain from a year prior to the elimination of the credit, they can most likely be used in carry-forward situations.  Even if the provincial tax credit is eliminated, it currently remains in place as a federal non-refundable tax credit.

We’re Here to Support You

If the thought of tuition tax credits, provincial and federal have you a little unsure…we’re here to help. To make tax season as simple as possible, TurboTax has created solutions that work for all situations and preferences, including:

No matter your income or complexity of your return, you have an expert in your corner with TurboTax.