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 Key points of the tax software and 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 any unused tuition amounts from prior years on her 2024 notice of assessment (NOA).
| Categories | Datas |
|---|---|
| Name | Elise Morello |
| Social insurance number (SIN) | 000 000 000 |
| Address | 123 Main Street City, Province X0X 0X0 |
| Date of birth | August 17, 2004 |
| 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: 6,288.19
Box 16: Employee’s CPP contributions – see over: 62.84
Box 18: Employee’s EI premiums: 88.87
Box 22: Income tax deducted: 554.23
Box 24: EI insurable earnings: 6,288.19
Box 26: CPP/QPP pensionable earnings: 6,288.19
Box 45: Employer-offered dental benefits: 1
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 (University of Canada)
Text version of the above image
Tuition and Enrolment Certificate - For student (slip 2)
Protected B
Name and address of designated educational institution:
University of Canada
1000 College Drive
City, Province X0X 0X0
Box 13: Name of program or course: University Program
Student Name: Elise Morello
Student address:
123 Main Street
City, Province X0X 0X0
Box 14: Student number: 123456789
Box 17: Social insurance number (SIN): 000000000
Session periods
Session 1
Box 19: From YY/MM: XX/01
Box 20: To YY/MM : XX/04
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 22: Number of months full-time: 4
Box 23: Eligible tuition fees, part-time and full-time: $5,167.00
Totals
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.
Key points of the tax software
Important note
To access complete instructions on the various steps of entering data into the software, click on the title of each section below.
Elise's interview
- Click T4 and employment income in the left side menu
- Click the + sign next to T4 income (earned from any province except Quebec) in the T4 and T4E section
- Enter the information from Elise’s T4 slip
- Click T4A, T4FHSA and pension income in the left side menu
- Click the + sign next to T4A – Pension, retirement, annuity, and other income (COVID-19 benefits)
- Select [105] Scholarships, bursaries, fellowship from the OTHER INFORMATION (COVID-19 benefits) drop-down menu
- Enter the amount from Elise’s T4A slip into the field next to it
Tuition fees and transfer of unused amounts (T2202)
- Click Interview setup in the left-side menu
- Tick the box next to Tuition, education, textbooks, student loans, and Canada training credit in the Student section
- Click Tuition, education, student loans in the left side menu
- Click the + sign next to T2202 Tuition and enrolment certificate* (TL11A/TL11C/TL11D) (line 32300)
- In the Current year tuition amount section, enter the information from Elise’s T2202, Tuition and Enrolment certificate into the corresponding fields
- In the Transfer of current year unused amounts section:
- select Transfer to parent not processed from the Treatment of current year unused tuition amount – federal drop-down menu
- Leave the Portion of unused amount to transfer federally (max. $5,000) field blank
Takeaway points
- Elise’s full-time student status makes her scholarship fully tax exempt
- the scholarship income must still be entered into the tax software
- no amount was reported on line 13010 of the tax return
Transfer of unused tuition amounts
- Students may choose to transfer their unused current year tuition amount
- The maximum amount a student can transfer is $5,000
- They must complete the transfer section of the Form T2202
- The tax software automatically calculates the amount of tuition fees to transfer on schedule 11
- in this case, Elise transferred the maximum amount of $5,000 to her father