In some cases a tuition tax credit may be claimed for
courses taken outside Canada. The following criteria
must be satisfied in order to claim the credit:
full-time
attendance at a university outside Canada in a
course leading to a degree (not just a diploma).
the
university must be recognized by a nationally accepted
accrediting body of its country. The institutions in Schedule
VIII of the Income Tax Act Regulations are qualifying
institutions. To obtain a current list, contact a Canada Revenue Agency (CRA) Tax
Services Office.
the course
must not be less than 13 consecutive weeks in duration.
fees paid by
the student's employer, or by the employer of a parent of
the student, may not be claimed unless those fees have
been included in the income of the student or the student's parent.
When the courses taken outside Canada have been completed
online, the tuition tax credit may still be claimed if the courses have
a duration of at least 13 weeks. See the Tax Court of Canada cases McGrath
v. The Queen, November 2006 and Valente
v. The Queen, March 2006.
When the courses taken outside Canada have been taken by
correspondence, the tuition tax credit may not be claimed. However, the
education credit for part-time enrollment may still be claimed, because the criteria
includes enrollment, not physical attendance. See Tax
Court of Canada case Cleveland
v. The Queen, October 2003.
There have been Tax Court Cases which denied the tuition
credit for courses which did not meet the 13 week duration
criteria. See Tax Court of Canada cases Fayle
v. The Queen, January 2005, and Ali
v. The Queen, November 2004.
Tax Tip: Make sure your
university courses taken outside Canada have a duration of at least 13
weeks.
Education and textbook tax credits for courses
outside Canada
Ref: Income Tax Act s. 118.6(1)(b), 118.6(1)(c)
and 118.6(2)
When courses are taken outside Canada, education and textbook tax
credits may be claimed according to the guidelines in Tuition
costs and education amount above. A designated
educational institution includes:
a university
outside Canada at which the individual was enrolled in a
course, of not less than 13 consecutive weeks duration,
leading to a degree, or
if the
individual resided throughout the year in Canada near the US
border, a university, college or other educational
institution in the US providing courses at a post-secondary school
level, to which the individual commuted.
To qualify for the part-time education tax credit, the
individual must be enrolled at a designated educational
institution in a program of not less than 3 consecutive
weeks duration, that provides that each student in the
program spend not less than 12 hours in the month on courses
in the program.
The information on this site is not intended to be a
substitute for professional advice. Each person's situation differs, and
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site to your best advantage.
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