The tuition tax credit is a non-refundable federal tax credit that reduces the income tax owed by post-secondary students in Canada. For 2024, the federal tuition credit is calculated at 15% of eligible tuition fees paid — and any unused portion can be carried forward to future years or transferred to a parent, grandparent, or spouse. For Mississauga families with children at the University of Toronto, Sheridan College, UTM, or other Ontario post-secondary institutions, understanding how to maximize the tuition credit can save hundreds of dollars annually. Pathak Professional Corporation helps Ontario students and families claim all available education-related tax credits. Call 437-872-7399.

How the Tuition Tax Credit Works in Canada

The tuition tax credit is calculated as 15% (federal) of eligible tuition and fees paid to a qualifying educational institution. Ontario also provides a provincial tuition credit at 5.05% of eligible tuition (though Ontario’s provincial credit was eliminated in 2017 — see below). Combined savings:

What Qualifies as Eligible Tuition in Canada?

CRA defines eligible tuition fees for the federal tuition credit:

• Post-secondary tuition: Full-time or part-time fees paid to a Canadian university, college, or other designated educational institution
• Mandatory fees: Student association fees, athletic fees, computer lab fees, and library fees that are mandatory for all students
• Professional examination fees: Fees paid to professional licensing bodies for examinations that are required to obtain a professional status (e.g., CPA exams, bar admission exams, medical licensing)
• Occupational training programs: Fees paid to certain institutions for occupational skills training

What does NOT qualify:

• Textbooks (federal textbook credit was eliminated in 2017)
• Accommodation and meal plans
• Student health insurance premiums (may be claimed as medical expenses instead)
• Optional fees and student activity fees not required for all students
• Transportation to school

Ontario Tuition Credit — Important Update

Ontario eliminated its provincial tuition and education credits in 2017. Ontario students only receive the federal credit (15%). However, Ontario provides the Ontario Student Opportunity Grant and other bursary programs that are separate from the tax credit system. Despite the elimination of the provincial credit, the federal tuition credit continues to provide significant tax relief for Ontario students.

T2202 Tuition and Enrolment Certificate — What Students Receive

Each year, your educational institution issues Form T2202 (Tuition and Enrolment Certificate) by February 28 of the following year. The T2202 shows:

• Total eligible tuition fees for the academic year
• Full-time months and part-time months of enrollment
• The student’s SIN

You claim these amounts on Schedule 11 (Tuition, Education, and Textbook Amounts) of your T1 return. CRA automatically receives T2202 data from post-secondary institutions — but you should still file correctly using the information from your T2202.

Carrying Forward vs Transferring Unused Tuition Credits

If you are a student with low income (many students have income below the basic personal amount), you may not owe any federal tax — and the tuition credit cannot reduce your tax below zero. You have two options for the unused portion:

Option 1: Carry Forward the Unused Amount

Any unused tuition credit is automatically carried forward to future tax years. When you graduate and start earning income, your accumulated carried-forward tuition credits reduce your future tax bills. If you accumulated $40,000 in tuition credits over 4 years of university ($40,000 × 15% = $6,000 in federal tax credits), these carry forward indefinitely and will eventually reduce your income tax in high-earning working years.

CRA tracks your carryforward balance in your My Account. Always review your current carryforward balance when starting your first full-time job — many new graduates forget to claim their accumulated carryforward credits.

Option 2: Transfer to a Parent, Grandparent, or Spouse

Alternatively, you can transfer up to $5,000 of your current year’s unused tuition credit to one eligible individual:

• Parent or grandparent (or their spouse or common-law partner)
• Your own spouse or common-law partner

The transfer uses Schedule 11 to designate the amount, and the receiving parent claims it on their return using Schedule 2. The student must use all tuition credit against their own tax first, before transferring any to a parent.

Transfer strategy: If the student owes no tax, they can transfer up to $5,000 to the parent in the highest tax bracket (typically 43.41% in Ontario) — saving the parent up to $750 in federal tax on $5,000 of transferred tuition credit. Over 4 years of university, that’s $3,000 in parental tax savings from tuition transfers alone.

Professional Examination Fees as Tuition Credit

A commonly missed tuition credit: professional licensing examination fees that are required to obtain a professional designation count as eligible tuition fees for the federal tuition credit. Examples:

• CPA Common Final Examination (CFE) fees
• Ontario Bar Admission Course fees
• Medical licensing examination fees (MCCQE)
• Nursing registration exam fees (NCLEX)
• Engineering Professional Practice Examination fees (PEng)

These fees are reported on Form TL11D (Tuition Fees Certificate — Educational Institutions Outside Canada) or through the professional body’s T2202 equivalent. Many Ontario professionals miss this credit because they don’t receive a T2202 — the professional body may issue a receipt instead. Keep receipts for all professional exam fees. Our personal tax team identifies all eligible professional exam fees for our clients. Call 437-872-7399.

Foreign University Tuition — Can It Be Claimed?

Yes — tuition paid to a foreign educational institution can qualify for the federal tuition credit, provided:

• The institution is a university outside Canada
• The course is at the post-secondary level
• The student (a Canadian resident or citizen) was enrolled full-time for at least 3 consecutive weeks

The tuition is reported on Form TL11A (Tuition Fees Certificate — Educational Institutions Outside Canada), which the foreign institution completes. Some US universities (like those across the border from Windsor) and UK universities regularly issue TL11A certificates for Canadian students. The credit is calculated in Canadian dollars using the exchange rate on the date of payment. Our tax team assists students returning from study abroad with foreign tuition credit claims. Call 437-872-7399.

Canada Training Credit — Additional Education Credit Available Since 2020

Since 2020, a separate federal credit — the Canada Training Credit (CTC) — is available for Canadian workers paying for training courses. Key features:

• CTC accumulates at $250/year for every year you file a return, are between 25–64 years old, and have earned income between $10,605 and $155,625 — up to a lifetime limit of $5,000
• Refundable credit equal to 50% of eligible tuition and fees paid for qualifying training programs (up to your accumulated CTC limit)
• Qualified programs: fees eligible for the federal tuition tax credit AND fees to certain vocational training organizations
• CRA tracks your CTC balance in My Account

Unlike the tuition credit, the CTC is refundable — even if you have no tax owing, you receive the CTC as a cash payment. For workers taking paid courses and professional development training, the CTC can provide $125–$500/year in refundable credits. Our personal tax team claims the CTC for every eligible client who pays for training courses.

Frequently Asked Questions

My child just graduated — do I need to do anything special with their tuition carry-forward?

When your child starts earning income after graduation, their accumulated tuition carry-forward credits will automatically appear on their CRA My Account. They should check this balance before filing their first return as a working adult, and claim the carry-forward credits on Schedule 11 of their T1 return each year until the credits are fully used. These credits do NOT expire. For many UTM, Sheridan, or U of T Mississauga graduates, the accumulated carry-forward can be worth $3,000–$8,000 in federal tax credits — enough to eliminate income tax in the first year or two of working. Our Mississauga tax team reviews every graduate client’s carry-forward balance at their first tax return appointment. Call 437-872-7399.

Can my parents claim my tuition if I’m living abroad for school?

If you attend a qualifying foreign university (outside Canada) for at least 3 consecutive weeks as a full-time student, your tuition paid to that foreign university can qualify for the federal tuition credit — which you can then transfer up to $5,000 of (unused portion) to a parent or grandparent. The foreign institution must complete Form TL11A. Some foreign universities are familiar with this form; others may need a request explaining the Canadian tax credit. Your parent must be a Canadian resident to receive the transfer. Pathak Professional Corporation assists Mississauga families with foreign tuition credit claims. Call 437-872-7399.

I took online courses through Coursera, edX, or LinkedIn Learning — do they count?

Generally, NO. Online courses from platforms like Coursera, edX, Skillshare, or LinkedIn Learning do not qualify for the tuition tax credit, even if the content is excellent and professionally relevant. The tuition credit requires the institution to be a “designated educational institution” — typically an accredited post-secondary institution that can issue T2202 certificates. Platform-based online courses are not designated. However, some online courses through accredited universities (e.g., taking a university course online directly from a Canadian university or qualifying foreign university) would qualify. The Canada Training Credit may be available for certain recognized online vocational training programs — check your CTC balance in CRA My Account. Call 437-872-7399 if you have questions about whether specific courses qualify.

What is the deadline to claim tuition carry-forward from prior years?

There is no expiry on tuition carry-forward amounts — they accumulate indefinitely until used. However, to access your carry-forward balance from prior years, you need a record of the unused amounts. If you’ve been filing T1 returns each year, CRA tracks your balance automatically. If you missed filing returns in some student years (and never claimed the tuition amounts), you should file or amend those missing returns to establish the carry-forward balance. Going back to file prior-year returns that include tuition amounts claimed for the first time creates the carry-forward for future use — even if no tax was owed in those years. Pathak Professional Corporation handles multi-year tuition credit catch-up filings. Call 437-872-7399.

Tuition Tax Credit and Student Tax Planning in Mississauga

Pathak Professional Corporation provides student tax planning and return preparation for Mississauga students and their families: tuition credit claim on T1, T2202 review, carry-forward tracking, transfer to parents, foreign tuition TL11A claims, Canada Training Credit identification, and first-year-of-work carry-forward planning.

Call 437-872-7399 or email info@pathakcpa.ca. 48 Village Centre Place, Mississauga, Ontario L4Z 1V9.