Understanding the T2202 tax form

Understanding the T2202 tax form

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Replacing the T2202A and TL11b, the T2202 tax form for Tuition and Enrolment Certificate is a form issued by qualifyinf educational institutions summarizing the amounts related to tuition fees, textbooks and education. It is issued yearly in January for the preceding year. It can be accessed by CRA My account or your university/college’s website.

Who is this for?

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This federal tax form is to benefit all students who have paid tuition fees for post-secondary education. The T2202 tax form certifies a student for their education, tuition and the textbook amount for a claim on a non-refundable tax credit which can be used to reduce the tax payable on the 32300 Line of the tax return. You can check your eligibility for the credit based on the province you reside in from the official Canada Revenue Agency or CRA website under the Provincial and Territorial Tax and Credits for Individuals. Do take a note, starting 2017, the federal education and textbook tax credits were eliminated. For students residing in the province of Quebec, they will receive a Relevé 8 or RL-8 slip which is the Amount for Post-Secondary Studies.

What is meant by a non-refundable tax credit?

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When you earn a non-refundable tax credit, it reduces amount of tax you will have to pay on your taxable income. Also, as the name suggests, you will not get any money back with a non-refundable tax credit but it will help you offset the taxes owed. The federal tax credit is only available on tuition alone but some provinces still have the textbook or education credits available. Let us take a look at each province:

  1. Alberta: Tuition and Education amount to be eliminated after 2020.
  2. British Columbia: Tuition and Education amount eliminated after 2019.
  3. Manitoba: Tuition and Education amount to be retained.
  4. New Brunswick: Tuition and Education amount was reinstated after it was removed in 2017.
  5. Newfoundland and Labrador: Tuition and Education amount to be reinstated.
  6. Northern Territories: Tuition and Education amount to be retained.
  7. Nova Scotia: Tuition and Education amount to be retained.
  8. Nunavut: Tuition and Education amount to be retained.
  9. Ontario: Tuition and Education amount removed in September 2017.
  10. Prince Edward Island: Tuition and Education amount to be retained.
  11. Quebec: Tuition and Education amount in effect.
  12. Saskatchewan: Tuition and Education amount removed in September 2017.
  13. Yukon: Tuition and Education amount to be retained.

What is determined as eligible tuition fees?

When a student pays the fees to an educational institution to obtain new skills or upskill in an occupation, the fees paid is deemed to be Eligible Tuition Fees. Box number 23 in the T2202 form shows the Eligible Tuition fees. In order to qualify, you will need to have paid upward of $100 to each educational institution you enrol in. For institutions based in Canada, the qualifying educational institution will have to issue an official tax receipt that will indicate the eligible tuition fees paid in a given calendar year. Your educational institution will also mention which specific type of school you attended. In cases of foreign institutions, the concerning body should provide with every form that applies for the nation under its tax laws.

What falls within the scope of a designated educational institution?

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Canadian universities, colleges and other institutions that provide courses at a post-secondary level are deemed to be a Designated Educational Institution. The Human Resources and Skills Development Canada is responsible for certifying the courses offered by an institution that aims to improve or develop skills for an occupation. In case for institutions falling outside of Canada, to gain tax benefits, the student must be enrolled in a course for a minimum of 13 consecutive weeks to earn a bachelor level degree or higher. In cases for Canadian students living near the border area adjacent to the US who are enrolled in a US educational institution and commute to school the above rule of 13 consecutive weeks to earn a bachelor or higher level degree still holds true.

What falls within the scope of a qualifying educational program/course?

In order to qualify, the educational program/course will have to last at least for three consecutive week and minimum requirement of 10 hours of work or class per week, excluding any study time. 

How to claim tuition fees if you are enrolled in a flying school or club?

The Tl11B slip was issued for your flight training which was eliminated in 2019 and it is now directly reported on the T2202 tax slip in Box 12 as flight training.

Is it necessary to include the T2202 tax form when you file your tax return?

Though it is not mandatory to include the T2202 tax form when filing, it is best practice to keep the T2202 form with you at all times since the Canadian Revenue Agency or the CRA might ask to see it in some cases. Also, it is important to keep in mind that if you are planning to transfer or carry forward any tuition and education amounts, you will need to include the T2202 form with your income tax return for the tax year the form was issued to you. Keeping the Schedule 11 tax form handy is also advisable for CRA audit purposes. The completion and filing of the Schedule 11 tax form is necessary for a student who wants to claim, transfer or carry forward the tuition, education and textbook amounts tax credit.

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References:

  1. T2202 Tuition and Enrolment Certificate – Canada.ca
  2. Guide for Designated Educational Institutions – Filing the T2202, Tuition and Enrolment Certificate and Summary – 2019 – Canada.ca
  3. Relevé 8: Amount for post-secondary studies – H&R Block Canada (hrblockonline.ca)
  4. T2202: A Guide to Claiming Tuition | Wealthsimple
  5. TL11B: Tuition and Enrolment Certificate – Flying School or Club – H&R Block Canada (hrblockonline.ca)
  6. Completing Schedule 11 – Canada.ca
  7. Non-Refundable Tax Credits | 2020 TurboTax® Canada Tips (intuit.ca)

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