Tuition Transfer and Carryforward — Use Unneeded Tuition Credits Instead of Letting Them Sit Idle
What Is It?
Current-year tuition amounts can sometimes be:
- used by the student,
- transferred to an eligible relative, or
- carried forward for later use.
This is valuable because students often have low tax payable now but relatives may be able to use part of the credit immediately.
What Most People Don’t Know
- Only current-year amounts can be transferred. Carried-forward amounts from earlier years cannot be transferred later.
- The student must first use what they need to reduce their own tax.
- The transfer cap is generally $5,000 less the amount needed by the student.
Frequently Asked Questions
Can I transfer old tuition I carried forward from a prior year?
A: No. CRA says carried-forward amounts from prior years cannot be transferred.
Who can receive a transfer?
A: CRA allows transfer to certain people such as a parent, grandparent, spouse, or common-law partner, depending on the line and relationship.