If you have leftover tuition after reducing your taxes to zero, you can transfer leftover amounts to a parent, grandparent or partner. This will help them reduce their own personal tax liability.
Before you begin
As the student, you must claim the tuition amount on your own return before you can transfer it to your parent, grandparent, or partner. You must reduce your tax to zero (as calculated on the Schedule 11), before you can transfer any leftover amounts.
How much can I transfer to a parent, grandparent or partner?
When transferring tuition to a parent, grandparent or partner, the amount that you can transfer is automatically determined. To calculate the transfer amount, the government takes the federal or provincial maximum (read below) and deducts any amount you used to reduce your own tax owing.
- Federal: The federal maximum that you as a student can transfer of the current year’s tuition is $5,000.
- Provincial: The provincial and territorial tuition, education, and textbook maximum that you as a student can transfer of the current year’s tuition differs between all provinces and territories.
How to transfer your unused tuition to a parent, grandparent or partner
If you are a student with unused amounts available to transfer, Wealthsimple Tax will automatically show you how much you can transfer in the Tuition and Education Amounts section.
Before your parent, grandparent or partner can transfer tuition from you, you must report your tuition and the amount you will transfer on your own return. To report the amount you will transfer, follow the steps below:
- Head to my.wealthsimple.com and sign into your Tax profile
- Under Add Tax Form, search “tuition” and add the Tuition and Education Amounts section
- Answer YES to the question “Were you a post-secondary student in 2022?”
- Enter your tuition fees by filling out the table that appears.
- If you have tuition credits that are available to be transferred, the Tuition transfer section will appear. This amount will only be accurate once all information in your tax return has been entered.
- The maximum amount available to be transferred will appear in parentheses beside the Federal or Provincial amount to transfer row. Enter the amount you wish to transfer for each (if applicable) as well as the name and relationship of the person who you are transferring the amount to.
- Log into the Tax mobile app
- Scroll down to the Tuition and Education Amounts section
- Under Tuition transfer enter the amount that you wish to transfer, making sure to stay within your maximum
When you submit your tax return through NETFILE, you don’t need to complete the designation part of your T2202 slip. However, you may want to fill it out and give it to your parent, grandparent or partner for their own records.
How to transfer your child or grandchild’s unused tuition
Once your child, grandchild or partner has reported on their own return the amount of tuition that they wish to transfer to you, you can claim the transferred amount by following the steps below:
- Head to my.wealthsimple.com and sign into your Tax profile
- Under the Add Tax Forms search for “Dependants”
- Add the Your Dependants section to your return and fill out their personal details (name, DOB, etc.)
- Under the heading Tuition transferred from your dependant, indicate that they attended a post-secondary program and enter the amounts that the student has transferred to you in the table that appears.
- Log into the Tax mobile app
- Scroll down to the search bar under Build your return and type Dependants
- Add the Your Dependants section to your return
- Under the heading Tuition Transferred from your Dependant, indicate that they attended a post-secondary program and then enter the required information
Residents of Quebec will also need to do the following:
- Enter the amount from box A of their RL-8. We use this to determine your entitlement to certain credits, regardless of your dependant’s age.
- Enter the amounts from your child’s Schedule S and/or T, as requested. If your child is using Wealthsimple Tax you can also find these amounts in the Tuition and Education Amounts section of their return.
How to transfer unused tuition from a partner
If your partner is a student with unused tuition, they can transfer it to you so you can claim it on your own tax return. Once they have reported the amount of tuition they wish to transfer on their own return, you can transfer their unused tuition. You’ll claim the tuition transfer on the T1 General line 32600 (calculated from Schedule 2), and not on line 32400.
If you are using linked returns, we’ll automatically transfer the amount the student indicates they will transfer when they select Yes, transfer this amount to my partner.
If you are not using linked returns, follow the steps below:
- Head to my.wealthsimple.com and sign into your Tax profile
- Navigate to the Your Partner section and indicate that you would like to transfer your partner’s tuition
- Enter the federal and provincial amounts that the student (your partner) indicated that they wish to transfer to you on their return
- Fill in the rest of the required information
- Head to my.wealthsimple.com and sign into your Tax profile
- Navigate to the Your Partner section and indicate that you would like to transfer your partner’s tuition
- Enter the federal and provincial amounts that the student (your partner) indicated that they wish to transfer to you on their return
- Fill in the rest of the required information
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