Unused Provincial tuition prior years question..

[Kobe]

So I have a few thousand from "unused provincial or territorial tuition and education amounts from prior years" The amount can be carried forwarded...

I finished school like 3-4 years ago, and have never really looked at the Canada Revenue thingy, just always had accountant do the papers..


Anyways would this amount be directly into my account or does it work that:

Example: Let's say I make $50,000 a year and $5,000 unclaimed tuition amounts.

$30,000 Taxable - $5,000 = $45,000

Would I just have to pay taxes on $45,000? or would the $5,000 just be cash when I claim it?

Just put in some random numbers for an example, taxes are due tomorrow so I obviously won't be dealing with it this time around but for what I googled it just gets carried over each time...

Do I need some previous papers to claim this? How does it work?

Sorry I'm a pretty big retard and this and seems like free money so I decided to ask


Edit: Before people tell me to go talk to an accountant I wanted to just ask here first, I will go in and ask if I can't get a solid answer here!

[blitz]

You'd just pay tax on the 45k, you would not get 5k cash.

[jacky4566]

You want to file a Form AB428 and a Schedule AB(S11). Part of the Schedule S11 is Line 5856 – Your tuition and education amounts.

Seriously I just spend 5 minutes on google to find this out.

http://www.cra-arc.gc.ca/E/pub/tg/50....html#P77_7250

*I am only a desk jocky experianced in googlefoo, I am not an accountant

[realazy]

Not exactly.

Non refundable Tuition credits are refunded by multiplying the lowest tax bracket by the credit amount to reduce payable taxes.

So in your example, the $5,000 AB credits will get you $500 in AB (as the tax rate is 10% for 2014), as long as you had to pay at least $500 in taxes. If it reduces your taxes to $0, then the remainder carries forward (the definition of "non-refundable").

*I may have confused this with the federal non refundable tax credits... I'm not an accountant and basing this off memory....

[dirtsniffer]

Are you sure it is the lowest tax bracket? My understanding it just lowers your taxable income, so you would be saving at the highest tax bracket you're in?

Also not an expert.

[Kobe]

Originally posted by jacky4566
You want to file a Form AB428 and a Schedule AB(S11). Part of the Schedule S11 is Line 5856 – Your tuition and education amounts.

Seriously I just spend 5 minutes on google to find this out.

http://www.cra-arc.gc.ca/E/pub/tg/50....html#P77_7250

*I am only a desk jocky experianced in googlefoo, I am not an accountant

Thanks yes I saw this but it was not exactly answering my question on how the unused amounts would be put into place.

Originally posted by realazy
Not exactly.

Non refundable Tuition credits are refunded by multiplying the lowest tax bracket by the credit amount to reduce payable taxes.

So in your example, the $5,000 AB credits will get you $500 in AB (as the tax rate is 10% for 2014), as long as you had to pay at least $500 in taxes. If it reduces your taxes to $0, then the remainder carries forward (the definition of "non-refundable&quot.

*I may have confused this with the federal non refundable tax credits... I'm not an accountant and basing this off memory....

Thanks this is something I was looking for, this would make more sense to me.


I also never had any student loans for Uni always just paid out of my account if this would make a difference?

[oilerfan4lyfe]

Originally posted by dirtsniffer
Are you sure it is the lowest tax bracket? My understanding it just lowers your taxable income, so you would be saving at the highest tax bracket you're in?

Also not an expert.

It's the lowest tax bracket for tuition. RRSPs come off the top (highest tax bracket) but regardless of what you make, tuition will apply only to the lowest tax bracket.