Instructions

1. Open the tax software
2. Review the Background information and Required slips (tax slips, receipts, etc.)
3. Provide all required information for the appropriate sections of the tax software
4. Once completed, compare your results with the solution provided
5. Afterwards, refer to the Takeaway points

Background information

Situation

Elise achieved high grades in the previous school year so the University of Canada awarded her a $6,000 scholarship and issued her a T4A slip. She also started working for the university’s bookstore part time and was issued a T4 slip. Elise wants to transfer any unused tuition amounts to her father.

Elise does not have a Canada training credit limit (CTLC) or any unused tuition amounts from prior years on her 2023 notice of assessment (NOA).

Required slips

T4 – Statement of Remuneration Paid (University Bookstore)

T4A – Statement of Pension, Retirement, Annuity, and Other Income (University of Canada)

T2202 – Tuition and Enrolment Certificate (University of Canada)

Review your results

Solution to Student with a scholarship transferring tuition fees to a parent who is not present.

Takeaway points

Steps to follow

1. Review their background information and required slips
2. In Interview setup, tick the boxes next to:
   • Employment income and employment insurance benefits (T4, T4E/RL-6) in the Employment and other benefits section
   • Pension income, other income and split pension income, COVID-19 benefits (T4A, T4FHSA, T4A(OAS), T4A(P), T4A-RCA, T4RSP, T4RIF, T1032) in the Pension and other income section
   • Tuition, education, textbooks, student loans, and Canada training credit in the Student section
3. Click T4 and employment income in the left side menu, then click the + sign next to T4 income (earned from any province except Quebec) to enter the information from Elise’s T4 slip
4. Click T4A, T4FHSA and pension income in the left side menu, then click the + sign next to T4A – Pension, retirement, annuity, and other income (COVID-19 benefits) and select [105] Scholarships, bursaries, fellowship from the OTHER INFORMATION (COVID-19 benefits) drop-down menu to enter the amount from Elise’s T4A slip into the field next to it
5. Click Tuition, education, student loans in the left side menu, then click the + sign next to T2202 Tuition and enrolment certificate* (TL11A/TL11C/TL11D) (line 32300)
6. In the Current year tuition amount section, enter the amounts from Elise’s T2202, Tuition and Enrolment certificate
7. In the Transfer of current year unused amounts section, select Transfer to parent not processed from the Treatment of current year unused tuition amount – federal drop-down menu and leave the Portion of unused amount to transfer federally (max. $5,000) field blank

Although Elise’s full-time student status makes her scholarship fully tax exempt, she still needs to report her scholarship income.

Since the field Portion of unused amount to transfer federally (max. $5,000) was left blank, the software automatically calculates the maximum amount of tuition fees to transfer to her father on schedule 11, line 24.

If an individual does not want to transfer the maximum amount, they must provide you with the exact amount they want to transfer.

For more information, refer to UFile instructions.