Education, Tuition, and Textbook Credits

In order to start a new life in Canada, a lot of immigrants choose to go back school to get a local degree. Do you know that as a student, no matter you are part-time or full-time student, part of the tuition and book costs can be used as a non-refundable credit.

Generally, you can claim tuition fees if you paid more than $100 for a course taken at the post-secondary level or for a course that develops or improves skills in an occupation and the educational institution.
Education amount:

• If you were enrolled full-time, you can claim $400 per month
• If you were enrolled part-time, you can claim $120 per month.

Textbook amount:
You can claim this amount only if you are entitled to claim the education amount. The amount is:

• $65 for each month you qualify for the full-time education amount; and
• $20 for each month you qualify for the part-time education amount

Most new immigrants don’t have much income the first few years after they move to Canada. As such, the tax payable would be quite low and could not fully utilize all the non-refundable credits (tuition/books is one of the non-refundable credits).
However, different from other non-refundable credits, you can carry forward unused tuition and education amounts until you have enough income to use them all up. Each year, you first apply the amounts that you have carried forward from last year. Then, if you still have taxable income, you apply whatever portion of current year tuition, education, and textbook amounts that you need to reduce your taxable income to zero. Any amounts that still remain can be carried forward to next year, or transferred to an eligible person.