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I understand the tuition cannot be overrided but my return is showing a refund of $1400+. This doesn't make sense. Should it not only provide a zero balance?

 
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I understand the tuition cannot be overrided but my return is showing a refund of $1400+. This doesn't make sense. Should it not only provide a zero balance?

Tuition credit is, as you say,  used to reduce tax payable. It is applied in conjunction with other credits on Schedule 1 to reduce your tax payable. The Tuition credit only functions with the information on Schedule1, regarding income , tax payable nd non-refundable credit.

But your refund/ balance due also depends on how much ( or how little!) tax was deducted at source as appears on your T-slips. That amount of tax paid is the sum of what your slip issuers have deducted, without direct reference to your credits.

Tax payable - Tax paid = Refund/balance due.

In other words, if your credits, including tuition, reduced your tax payable to zero, but you already paid $1400 based on payslip and other tax payments, you would be refunded the $1400.

Another way to look at this is you overpaid CRA during the year!

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2 Replies

I understand the tuition cannot be overrided but my return is showing a refund of $1400+. This doesn't make sense. Should it not only provide a zero balance?

Did you have any income which you had tax deducted from? On the Student Summary does it show your Tuition Amounts and have anything under "Amount Claimed in 2018"?

I understand the tuition cannot be overrided but my return is showing a refund of $1400+. This doesn't make sense. Should it not only provide a zero balance?

Tuition credit is, as you say,  used to reduce tax payable. It is applied in conjunction with other credits on Schedule 1 to reduce your tax payable. The Tuition credit only functions with the information on Schedule1, regarding income , tax payable nd non-refundable credit.

But your refund/ balance due also depends on how much ( or how little!) tax was deducted at source as appears on your T-slips. That amount of tax paid is the sum of what your slip issuers have deducted, without direct reference to your credits.

Tax payable - Tax paid = Refund/balance due.

In other words, if your credits, including tuition, reduced your tax payable to zero, but you already paid $1400 based on payslip and other tax payments, you would be refunded the $1400.

Another way to look at this is you overpaid CRA during the year!