A few years ago, many provinces began to make changes to their personal income tax credits and, in 2017, New Brunswick followed suit by omitting the tuition tax credit. However, for 2019, the tuition tax credit has been reintroduced going forward and eligible tuition fees for 2017 and 2018 will be reported on your 2019 income tax return.
This means good news for New Brunswick students because tuition fees receive credits that go against the amount of personal income tax payable to the provincial government of New Brunswick.
Tuition Tax Credits in New Brunswick
Since the tuition tax credit has been reintroduced for this tax season, it’s important to first know how these affect your current and previous taxes. New Brunswick tuition fees paid in 2017 and 2018 must be reported on the 2019 return. Luckily, this means that these fees can be used in 2019 or carried forward to a future year.
However, it’s important to note that amounts from 2017 and 2018 can only be claimed by the student and cannot be transferred to another person that would otherwise be eligible for a transfer (more on tuition fee transfers later).
When you’re ready to begin your taxes, collect all documents that are relevant to tax time, including your T4(s), as well as (specifically in regards to tuition) proof of tuition paid. Proof of tuition that was paid in 2017, 2018 and 2019 can be obtained through your post-secondary institution (separately for each year). Download and save a hard copy of your official receipt, also keeping it handy for filing your taxes. Official receipt forms include forms T2202, TL11A, TL11C, or other official tuition tax receipts. Contact your post-secondary institution if you can’t locate any of these forms through your student portal.
The next step is to fill out a Schedule NB(S11), a form that outlines Provincial Tuition and Education Amounts for New Brunswick residents that are also students (either in New Brunswick, Canada or abroad).
Transferring Tuition Amounts
If you find that you are not in need of using your tuition fees to reduce your personal income taxes payable to zero, there are two methods can help you maximize your tuition tax credits in New Brunswick.
The first option is to transfer a portion of your tuition fees to an eligible individual. This person can be a parent or primary caregiver, grandparent, spouse or common-law partner, or your spouse or common-law partner’s parents or grandparents. To transfer your tuition fees to another person, you must complete the “Transfer or carry forward of unused amount” section of Schedule NB(S11). The maximum amount a student can transfer to another qualifying individual is $5,000, less what has been claimed on the student’s own tax return. This individual will need to acknowledge this transfer in their own personal tax return for 2019.
Carrying Forward Unused Amounts
The second option if you are not in need of the entirety of your tuition fees is to carry over the amount to a future year’s tax return. To properly state the amount of tuition fees that you would like to carry over, complete the “Transfer or carryforward of unused amount” section of Schedule NB(S11), which helps you to calculate the amount that you don’t need to use and that you can carry forward into another year.
Federal Tuition Tax Credits
Tuition tax credits in New Brunswick can be combined with the federal tuition tax credit program, letting you make the most of your personal income tax claim! TurboTax seamlessly walks you through your personal income tax claim for both provincial and federal taxes.
We’re Here to Support You
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