In the below example, we see that a student could see tax savings/refunds of $2,667 + $520 = $3,187.
Tuition tax credits are a huge confidence boost when looking down your college & career path!
Tax savings can “pay” for over 29% of your tuition costs:
You could find savings of over $2,600 by claiming all eligible tuition tax credits! Here’s how…
Let’s assume an SBC student pays $9,000 tuition…
Tuition Credits based on the T2202 SBC issues
- Federal Tuition Credit is worth 15% of tuition paid = $1,350 tax credit
- Manitoba Tuition Credit is worth 10.8% of tuition paid = $972 tax credit
Education Credits for a full-time student based on the T2202 (part-time students get less)
- Manitoba Education Credit is worth 10.8% of $400/month of classes = $345 tax credit
Add all this up! That’s $2,667 in tax benefits – over 29% of your tuition. This means you could save over $2,600 by claiming all eligible tuition tax credits!
Any year that a student is not taxable, up to $5,000 of tuition/education credits may be transferred to a taxable spouse or parents/parents-in-law. In Manitoba, this is worth up to $1,290/year. Excess credits, if any, are carried forward to subsequent years. (Check the rules for other provinces – some are different.)
Receive 20% rent credit for your room fees (not board) paid to live in dorm (maximum credit of $700 a year).
For example, paying room fees of $2,600 results in a $520 refundable credit.
Tax credits vary by Province. The above information is based on Manitoba’s tax return credits.
Bonus $250 or more
Canada Tax Credit
This is particularly good news for part-time students or students who just took a single course!
Starting in 2019, Canada introduced a $250 per year Training Credit. So, if you took a $500 course, you would get $250 back.
This is a cumulative credit of $250 per year up to a maximum of $5,000 in a lifetime for students ages 26 to 64.