With current tuition cost levels, it is great that students or parents can claim the Tuition and Textbook tax credits to reduce taxes payable in a given year. Tuition costs can be a very high for some students and also for parents supporting their children through post-secondary education. The Canadian government understands this, therefore, have also allowed for the textbook tax credit in addition to tuition amounts.
If parents are paying for their children's education, the Tuition tax credits can be transferred over from the student to their parents. All that needs to be done is to have the student sign off on their tax slip, T2202A, under the "designation for the transfer of an amount to a spouse, parent, or grandparent". The maximum amount that can be transferred is $5,000 Federally and also restricted on the provincial levels also. The cost of text books can also be claimed by the student or parent also to help provide some tax relief.
There are various factors in calculating the tax credit, such as being a full-time student or part-time, but being able to access the T2202a from Universities and Colleges in Canada provides you with most of the information you require. For the textbook costs, keeping track of all receipts and expense related to the textbook purchased will be required.
For more information or assistance required on filing you personal income taxes, please contact an MP Group professional.