5 March 1998 External T.I. 9801555 - TRANSFER TUITION CREDITS

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

Pecking order for transfer of student tuition credits.

Position:

Student; Excess, by spouse if credit claimed under section 118 or 118.8; in the absence of spouse not claiming under 118 or 118.8, it would be the parent or grandparent who claimed a credit under 118; and any other case, the parent or grandparent designated by the student.

Reasons:

118.9(1) and (2).

980155
XXXXXXXXXX A.M. Brake

Attention: XXXXXXXXXX

March 5, 1998

Dear Sirs:

Re: Transfer of Tuition Credits, Subsection 118.9(1)

This is in reply to your letter of January 13, 1998, regarding the eligibility of a grandparent for transfer of a grandchild's tuition credits as provided by subsection 118.9(1) of the Income Tax Act (the "Act"). You asked what constitutes a supporting person for purposes of this transfer provision.

While subsection 118.9(1) of the Act is captioned "transfers to supporting person", there is no actual support requirement contained therein. However, transfer to a parent or grandparent of the unused education and tuition tax credits under 118.9(1) is possible only if the student is unmarried in the year, or if married, the student's spouse claims neither a personal tax credit for the student under section 118 of the Act nor a tax credit under section 118.8 of the Act for any of the student's unused tax credits. Also, subsection 118.9(2) of the Act provides that when a particular parent or grandparent has claimed a personal tax credit under section 118 of the Act in respect of the student, only that parent or grandparent is entitled to the transfer provided by subsection 118.9(1) of the Act. In any other case, the student must designate in writing, the one parent or grandparent who is entitled to the transfer of the tuition and education credits for the year. Forms T2202 and T2202A provide for designating the appropriate person.

We trust our comments will be of assistance to you.

Yours truly,

James Wilson
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch