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Percy
Returning Member

Does my tuition have to be used to reduce my taxes to zero because I only had $4500 in employment income and $12,000 in CERB payments so why would I owe any taxes?

 
2 Replies
ayseleren18
Level 4

Does my tuition have to be used to reduce my taxes to zero because I only had $4500 in employment income and $12,000 in CERB payments so why would I owe any taxes?

Thank you for choosing TurboTax,

The tuition tax credit is a percentage of the tuition you paid (15% federally and a lower amount provincially). Therefore your tuition doesn't have to be used to reduce your taxes to zero. However, CRA will make you use the tuition to reduce your tax payable to zero if you have any new tuition added or carried forward. 

This Non-Refundable Tax Credit is used to offset part of the expense of college or university by reducing any tax you may have payable.

 

Moreover, as a non-refundable credit, if the tuition amount is greater than the tax owed, the non-refundable credit can only be used to reduce or eliminate your federal/provincial tax bill but won’t generate a refund. 

 

Please visit the website of Provincial and territorial tax and credits for individuals to learn more about your provincial tax rates.

Percy
Returning Member

Does my tuition have to be used to reduce my taxes to zero because I only had $4500 in employment income and $12,000 in CERB payments so why would I owe any taxes?

Okay so I do have NEW tuition added for 2020 AND some carried forward from the previous year. 

Half of my federal "carried forward" tuition amount and about 70% of my provincial "carried forward" tuition were shown as "claimed" in 2020 on my student summary.  In other words, almost $8,000 was claimed in 2020.  My income was only $16,500.  Doesn't that seem like a lot of tuition to use to reduce tax on such a small amount?   Does that sound right?

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