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fexcept
Returning Member

Tuition transfer amounts between federal and provincial

We live Alberta so we are allowed to transfer for provincial taxes.  My question is what is the transfer split between federal and provincial.  From everything I have read so far it remains ambiguous to me.  Here is my question:

If my daughter has $6000 tuition dollars available to transfer, which of the three possible scenarios is correct:

A) We can transfer $5000 for the federal amount and $0 for the provincial amount

B) We can transfer $5000 for the federal amount and $1000 for the provincial amount

C) We can transfer $5000 for the federal amount and $5000 for the provincial amount

 

TT allows all of these scenarios to be entered.  Thanks in advance for the answer.

1 Reply

Tuition transfer amounts between federal and provincial

It depends. $5000 is both the Federal (and Alberta) maximum on how much can be transferred. This doesn't mean you'll always get to transfer the full $5000, though. If a student has less than $5000 in tuition or they have already used some (or all) of their tuition reducing their own tax payable, then the amount they can transfer will be less than $5000.

 

Also, even if you can transfer the full $5000, you may not want to. If the person who's going to receive the transfer has less that $5000 in taxes owning, then there is no point in transfer the full $5000 because the receiver can't use it.

 

Furthermore, the Federal and Provincial transfers are separate from each other. So it's possible for a student with $6000 in tuition to be able to transfer $5000 for the federal amount and $5000 for the provincial amount .