Ottawa is providing limited tax relief for students — but not until the 2002 taxation year. The education tax credit will be extended to provide assistance for post-secondary students who receive financial assistance under government training programs.
The education tax credit helps students defray non-tuition costs of post-secondary education and training, such as textbooks. The amounts used to calculate the education tax credit were doubled in the October 2000 budget update to $400 a month of full-time study and $120 a month of part-time study.
This measure will apply to the 2002 and subsequent taxation years.
Ottawa is also providing tax relief for adults pursuing basic education. That includes adults taking primary or secondary level education or other forms of training that do not currently qualify for the tuition tax credit.
Qualifying programs include:
- those provided under the Employment Insurance Act or similar programs provided by a province or territory;
- training programs established under the authority of the Minister of Human Resources Development, such as the Employability Assistance for People with Disabilities initiative or the Opportunities Fund for Persons with Disabilities.
At present, some adult students who take basic education to upgrade their skills receive direct financial assistance from governments to pay their tuition fees. This tuition assistance is included in income and tax must be paid. The budget will allow individuals to deduct the amount of tuition assistance received for adult basic education that has been included in their income.
This is a retroactive measure and will apply to eligible tuition assistance received after 1996.