TUTION & STUDENT LOAN INTEREST

Students receive relief through the federal tuition tax credit (line 32300) and the credit for interest paid on government student loans (line 31900). The federal education and textbook amounts were eliminated after 2016, but unused amounts from before 2017 can still be carried forward.

TUITION AMOUNT (LINE 32300)

• Eligible fees over $100 per institution paid for post-secondary courses at a designated institution, or for occupational skills courses at a certified institution for students 16 or older.

• Supported by the T2202 slip (Canadian schools) or TL11A to TL11D forms (foreign schools and special situations).

• Credited at 14 percent federally (2026).

• Calculated on Schedule 11.

USING, TRANSFERRING AND CARRYING FORWARD

• The student must first apply the current-year and carried-forward amounts to reduce their own tax to zero.

• Up to $5,000 of the current-year amount, minus what the student used, can be transferred to one supporting person: a spouse or partner, or a parent or grandparent (of the student or the student's spouse). The transfer is claimed on line 32400 or 32600 and the student signs the T2202.

• Whatever is left carries forward indefinitely for the student only.

INTEREST PAID ON STUDENT LOANS (LINE 31900)

• 5% federal non-refundable tax credit qualifies on interest paid on loans under the Canada Student Loans Act, the Canada Student Financial Assistance Act, the Apprentice Loans Act, or provincial equivalents such as OSAP.

• Not eligible: interest on personal loans, lines of credit, or student loans from banks, even if used for school, or loans that were combined with other debt.

• Unused interest can be carried forward up to five years.

• Since April 2023, the federal portion of Canada Student Loans charges no interest, so eligible interest generally comes from provincial loans or older balances.