Student with a scholarship transferring tuition fees to a parent who is not present
Student with a scholarship transferring tuition fees to a parent who is not present
Pre-test question
Sorry, that is incorrect
The maximum amount of tuition fees a student may transfer federally is $5,000.
That is correct
The maximum amount of tuition fees a student may transfer federally is $5,000.
Instructions
- Open the tax software
- Review the Background information and Required slips (tax slips, receipts, etc.)
- Provide all required information for the appropriate sections of the tax software
- Once completed, compare your results with the solution provided
- Afterwards, refer to the Takeaway points
Background information
Situation
Elise achieved high grades in the previous school year so the University of Canada awarded her a $6,000 scholarship and issued her a T4A slip. She also started working for the university’s bookstore part time and was issued a T4 slip. Elise wants to transfer any unused tuition amounts to her father.
Elise does not have a Canada training credit limit or any unused tuition amounts from prior years on her 2021 notice of assessment (NOA).
Identification information
| Name | Elise Morello |
|---|---|
| Social insurance number (SIN) | 000 000 000 |
| Address | 123 Main Street City, Province X0X 0X0 |
| Date of birth | August 17, 1998 |
| Marital status | Single |
Required slips
T4 – Statement of Remuneration Paid (University Bookstore)
Text version of the above image
T4 – Statement of Remuneration Paid
Protected B
Employer’s name: University Bookstore
Employee’s name and address:
Last name: Morello
First name: Elise
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income – line 10100: 6,288.19
Box 16: Employee’s CPP contributions – line 30800: 62.84
Box 18: Employee’s EI premiums – line 31200: 88.87
Box 22: Income tax deducted – line 43700: 554.23
Box 24: EI insurable earnings: 6,288.19
Box 26: CPP/QPP pensionable earnings: 6,288.19
T4A – Statement of Pension, Retirement, Annuity, and Other Income (University of Canada)
Text version of the above image
T4A – Statement of Pension, Retirement, Annuity, and Other Income
Protected B
Payer’s name: University of Canada
Recipient’s name and address:
Last name: Morello
First name: Elise
123 Main Street
City, Province X0X 0X0
Box 012: Social insurance number: 000 000 000
Box 105: 6,000.00
T2202 – Tuition and Enrolment Certificate
Text version of the above image
Tuition and Enrolment Certificate (slip 2)
Protected B
Name and address of designated educational institution:
University of Canada
1000 College Drive
City, Province X0X 0X0
Student number: 123456789
Name of program or course: University Program
Student Name: Elise Morello
Student address:
123 Main Street
City, Province X0X 0X0
Social insurance number: 000000000
Session periods
Session 1
Box 19: From YY/MM: XX/01
Box 20: To YY/MM : XX/04
Box 21: Number of months part-time:
Box 22: Number of months full-time: 4
Box 23: Eligible tuition fees, part-time and full-time: $4,523.00
Session 2
Box 19: From YY/MM: XX/09
Box 20: To YY/MM : XX/12
Box 21: Number of months part-time:
Box 22: Number of months full-time: 4
Box 23: Eligible tuition fees, part-time and full-time: $5,167.00
Totals
Box 24:
Box 25: 8
Box 26: $9,690.00
Review your results
Solution to Student with a scholarship transferring tuition fees to a parent who is not present.
Takeaway points
Steps to follow
- Review their background information and required slips
- In Interview setup, tick the boxes next to:
- Employment income and employment insurance benefits (T4, T4E/RL-6) in the Employment and other benefits section
- Pension income, other income and split pension income, COVID-19 benefits (T4A, T4A(OAS), T4A(P), T4A-RCA, T4RSP, T4RIF, T1032) in the Pension section
- Tuition, education, textbooks, student loans, and Canada training credit in the Student section
- Click T4 and employment income in the left side menu and click the + sign next to T4, to enter the information from Elise’s T4 slip
- Click T4A and pension income in the left side menu, then click the + sign next to T4A – Pension, retirement, annuity, and other income (COVID-19 benefits) and select [105] Scholarships, bursaries, fellowship from the OTHER INFORMATION (COVID-19 benefits) drop-down menu to enter the amount from Elise’s T4A slip in the field beside
- Click Tuition, education, student loans in the left side menu and click the + sign next to T2202 Tuition and enrolment certificate* (TL11A and TL11C)(line 32300)
- Under the Current year tuition amount heading, enter the amounts from Elise’s T2202 – Enrolment and tuition certificate
- Under the Transfer of current year unused amounts heading, select Transfer to parent not processed from the Treatment of current year unused tuition amounts – federal drop-down menu and leave the Portion of unused amount to transfer federally (max $5,000) field blank
Although Elise’s full-time student status makes her scholarship fully tax exempt, she still needs to report her scholarship income.
Since the field Portion of unused amount to transfer federally (max $5,000) was left blank, the software automatically calculates the maximum amount of tuition fees to transfer to her father on schedule 11, line 32700.
If an individual does not want to transfer the maximum amount, they must provide you with the exact amount they want to transfer.
For more information, refer to UFile instructions.
- Date modified: