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Tips

 

Tuition Fee Transfer
 

It may be possible to transfer tuition fees and education credits to a spouse, parent or grandparent of the student.

 

To qualify, the student must designate, in writing, the amount they wish to transfer. This amount is then eligible as a tuition fee and education tax credit on the spouses, parent or grandparents tax return.

 

This can be useful in situation where a child has no income with which to claim the tuition tax credits.

 

For example, if a child incurs tuition fees of $5,000 in one calendar year and they have no taxable income with which to utilize the tuition tax credit, it may be preferential for the parent to claim the tax credit ensuring that some tax relief is provided in the year the tuition fees are incurred.

 

The maximum tuition fee amount that can be transferred in any given year is $5,000.

 

It is important to note that students must first use the tuition fees to reduce their taxable income to zero before any amount can be transferred to a spouse, parent or grandparent.

 

Please give us a call to find out more about the transfer of tuition fees.

NOTE: The Shannon & Company 'Tips' are NOT intended to cover all tax issues. You should talk to your Shannon & Company professional before making any decisions regarding the information found here.

 

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