Tax Question

[orange]

Hey everyone.

I filed my tax return last week and got a letter back from the CRA.

The second paragraph tripped me up a little.
"We have adjusted your alberta claim for tuition and education amounts from 0 to 2X,XXX. This includes 2X,XXX of unused provincial or territorial tuition and education amounts from prior years"

What does that mean? I ended up graduating last year. With student loans that i'm paying for (14K - 7K prov, 7K fed.). Is this a cause for concern for me?

[dubhead]

Originally posted by orange
Hey everyone.

I filed my tax return last week and got a letter back from the CRA.

The second paragraph tripped me up a little.
"We have adjusted your alberta claim for tuition and education amounts from 0 to 2X,XXX. This includes 2X,XXX of unused provincial or territorial tuition and education amounts from prior years"

What does that mean? I ended up graduating last year. With student loans that i'm paying for (14K - 7K prov, 7K fed.). Is this a cause for concern for me?

Not at all pretty sure this means you have 20k in student tax credits so if anything its a good thing.

[roopi]

This is a very good thing. It seems as though you did not claim any of your tuition in your return. You are eligble to claim a certain amount each year and carry the balance over to the following year(s) until you've used them.

Read this for details:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/323/menu-eng.html

[eblend]

Very good thing indeed.

I believe you have to claim it the first year you are working, up to a maximum and then do the same next year. Be ready for some substancial tax returns in the next few years.

If you are still not working for example, I believe your parents can claim it as well. They could claim it for you and give you the money for example.

I claimed most of my wife's credits for her when she was still in school. Any credits from the government is a good thing.

[busdepot]

Originally posted by eblend


If you are still not working for example, I believe your parents can claim it as well. They could claim it for you and give you the money for example.


Pretty sure you can only transfer amounts to a parent, grandparent, or spouse in the year in which the credit was accumulated.

OP, on your first tax return after graduating, you're going to get a massive refund if you're working a decent job. The credit gets so big while you're in university because the tuition tax credits on your S11 are very valuable, but you're not usually earning big bucks while you're in Uni so they just accumulate. A lot of us had parents pay our tuition which is why you have the chance to transfer that credit to them to maximum of $5,000 per year in the year that the credit was received. You will pretty much always have a surplus as a fulltime student even if you the transfer the maximum to another party.