Why does claiming he amount paid in tuition decrea...

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New Member

Why does claiming he amount paid in tuition decrease my refund? Is my college student required to claim their tuition fees?

 
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Moderator

Why does claiming he amount paid in tuition decrease my refund? Is my college student required to claim their tuition fees?

What is probably happening is, in an effort to get you as many credits possible, TurboTax is automatically claiming the Working Income Tax Benefit. The WITB is a refundable tax credit meant to provide tax relief for low-income individuals and families already in the workforce, and to encourage other Canadians to enter the workforce. However, students are generally not eligible for this credit.

So if you tell TurboTax you had a low income, it will claim the WITB for you, and your refund will go up. But if you later add information that makes you ineligible for the WITB (ex: if you attended school full time for more than 13 weeks), you no longer qualify, and the credit will be removed from your refund.

 

To make sure that TurboTax knows that you don’t wish to apply for this credit:

Click “Find” and search for “Working”, then select “Working Income Tax Benefit” from the list and click on the “Go” button.

Select “No” next to the question “Do you want to see if you qualify for the Working Income Tax Benefit?”. Click the “Continue” button to save.

 

You need to add your tuition to your tax return, even if it’s just to carry it forward. If you don’t claim your 2017 tuition in 2017, later when you do want to use it, you will have to come back and adjust your 2017 return to add it, and all the returns leading up to the year you need it.


Highlighted
Moderator

Why does claiming he amount paid in tuition decrease my refund? Is my college student required to claim their tuition fees?

What is probably happening is, in an effort to get you as many credits possible, TurboTax is automatically claiming the Working Income Tax Benefit. The WITB is a refundable tax credit meant to provide tax relief for low-income individuals and families already in the workforce, and to encourage other Canadians to enter the workforce. However, students are generally not eligible for this credit.

So if you tell TurboTax you had a low income, it will claim the WITB for you, and your refund will go up. But if you later add information that makes you ineligible for the WITB (ex: if you attended school full time for more than 13 weeks), you no longer qualify, and the credit will be removed from your refund.

 

To make sure that TurboTax knows that you don’t wish to apply for this credit:

Click “Find” and search for “Working”, then select “Working Income Tax Benefit” from the list and click on the “Go” button.

Select “No” next to the question “Do you want to see if you qualify for the Working Income Tax Benefit?”. Click the “Continue” button to save.

 

You need to add your tuition to your tax return, even if it’s just to carry it forward. If you don’t claim your 2017 tuition in 2017, later when you do want to use it, you will have to come back and adjust your 2017 return to add it, and all the returns leading up to the year you need it.


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