At a Glance
The T1213 form allows you to detail certain deductions and non-refundable tax credits that are not captured by Form TD1 (a form used to withhold taxes from your earnings). Some tax credits captured by Form T1213 include medical expenses, child care, tuition fees, among others.
A tuition fees tax credit will be acceptable by the CRA if the course was taken at a post-secondary learning institution and the individual must be at least 16 years old developing his or her occupational skills at a Ministry of Employment and Social Development Canada certified institution.
Why tuition tax credit is essential in 2021 and beyond
Your tuition tax credit represents all the eligible fees calculated together and multiplied by the lowest federal tax rate.
For instance, the lowest federal tax rate for 2020 stands at 10%. If you spent $2,000 on tuition in 2020, your tuition tax credit would be $200 i.e., 10% of $2,000.
Unlike tax deductions (expenses), tax credits are directly deducted from your taxes and not the income to be taxed. That means that if you were to pay $1,000 in taxes in 2020, with the above tax credit as an example, you’d end up paying $800.
Tax credits for your tuition fees are vital in reducing your income taxes and they are submitted to the CRA using Form T1213.
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