income. Premiums that are not deductible may be claimed as a medical expense.
Provincial tax credits – Ensure you benefit from provincial tax credits and changes to these credits. For example:
Manitoba’s fertility treatment tax credit is a refundable tax credit of up to $8,000 annually and is available on
Education and textbook tax credits – Claim these credits if you attend post-secondary school.
Scholarships and other amounts – Exclude from your income the full scholarship, fellowship or bursary for attending an elementary or secondary educational program or for a program that entitles you to the education tax credit. (Quebec does not tax scholarships or other prizes eligible for the federal exemption.) Be aware that new rules that affect post-secondary scholarships, fellowships and bursaries, commencing 2010:
make a post-secondary program that consists principally of research eligible for the education tax credit and the scholarship exemption only if it leads to a college or CEGEP diploma, or a bachelor, masters, doctoral or equivalent degree;
provide that an amount will be eligible for the scholarship exemption only if it can reasonably be considered to be received for the duration of the study period related to the scholarship, bursary or fellowship; and
limit the scholarship exemption for part-time educational programs to the amount of the tuition paid for the program plus the cost of program-related materials (exceptions apply).
Unused and unclaimed tax credits –
If you are unable to use your education, tuition or textbook tax credits, you may transfer them to your spouse, parent or grandparent (subject to limitations).
Remember that the carry-forward period is generally: indefinite for unclaimed education, tuition and textbook credits; and five years for unclaimed student loan interest.
Lifelong Learning Plan (LPP) – Make a tax-free withdrawal from your RRSP to finance the full-time training or education (part-time for students who meet one of the disability conditions) for yourself, your spouse or your common-law partner. You may withdraw up to $10,000 in a calendar year and up to $20,000 in total.
payments made after September, 2010, for qualifying fertility treatments and prescription drugs, net of reimbursements; and
Nova Scotia’s affordable living tax credit and poverty reduction credit are refundable tax credits available starting July 1, 2010, to certain low-income taxpayers.
Moving expenses – If you moved to attend school or moved from school to work or home, your moving expenses may be deductible.
Foreign university – If you attended a foreign university:
your tuition fees may be eligible for a tuition credit in Canada; and
you may be able to claim the education and textbook tax credits.
Graduates – If you graduate from an eligible post- secondary program and live and work in:
Manitoba – claim an income tax rebate on up to 60% of tuition fees over a minimum of six years (maximum lifetime rebate of $25,000). Be aware that students who have not graduated can claim an advance on this rebate on tuition fees paid after August 31, 2010 (maximum lifetime advance of $5,000 reduces the maximum lifetime rebate).
New Brunswick – claim a 50% tax rebate on tuition fees (maximum lifetime rebate of $20,000).
Nova Scotia – claim: an income tax rebate over six years of up to $15,000 (university) or up to $7,500 (college diploma or certificate), if you graduated after 2008; and a tax credit of up to $2,000 within three years of graduation if you graduated in 2006, 2007 or 2008.
a remote resource region in Quebec – claim a tax credit of up to $8,000 over three years if you work in your field of specialization.
Saskatchewan – claim a refundable tax credit that will rebate up to $20,000 of tuition fees over seven years.