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When it comes to post-secondary level education, there’s lots of tax breaks that you can
take advantage of. Uh, the first thing you need to know is tuition.
So, post-secondary level tuition would qualify for a credit, that’s federal and a provincial
or territorial credit, and um, you can claim it on your tax return when you file and that
is, allows you to reduce your tax, uh, to zero.
Uh, in addition there’s an education amount, which is a certain dollar amount based on
full or part time on every single month of, of attendance at post-secondary education.
And in addition to that, there’s something called a textbook tax credit.
What’s interesting is, again, the textbook tax credit is a defined amount. It has nothing
to do with how much you actually pay for textbooks. So you don’t need any receipts to claim
that credit.
So, you only use the credits to reduce your tax to zero because the credits are all non-refundable,
and therefore if there’s excess amounts, you have the option of transferring that,
uh, to a parent.
And that can often be a great idea, in particular or particularly if your parents are helping
you support yourself through education.
Be sure to speak to a financial advisor to learn all about the different options that
we have for saving for post-secondary education