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New Member

Entering the tuition as a full time students drops my refund by a lot. Why is this while it is in the Deduction part of income tax?

why does my tax refund drop by over $1100.00 when I enter my tuition as a full time student.  Isn't this suppose to be a deduction. very confusing there must be somewhere else that I am forgetting to put the tuition amount as a deduction so it will cancel itself as an income.   Because it looks like when enter it adds it as an income.

thank you

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Moderator

Entering the tuition as a full time students drops my refund by a lot. Why is this while it is in the Deduction part of income tax?

What's happening is when you first entered your slips, your income was low enough that you were assigned the Working Income Tax Benefit. (WITB). When you added your Tuition Slip, the WITB was removed from your tax return as students are excluded from this benefit. 

It can be tempting to remove your tuition to receive that extra benefit but it's not a good idea. CRA's matching program will eventually discover the missing tuition slip and you'll be required to repay the benefit plus interest. It's just not worth it.

View solution in original post

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Highlighted
Moderator

Entering the tuition as a full time students drops my refund by a lot. Why is this while it is in the Deduction part of income tax?

What's happening is when you first entered your slips, your income was low enough that you were assigned the Working Income Tax Benefit. (WITB). When you added your Tuition Slip, the WITB was removed from your tax return as students are excluded from this benefit. 

It can be tempting to remove your tuition to receive that extra benefit but it's not a good idea. CRA's matching program will eventually discover the missing tuition slip and you'll be required to repay the benefit plus interest. It's just not worth it.

View solution in original post