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 :
Whether a graduate student can be considered full-time and claim the education tax credit for a full-time student?
Position TAKEN
Depends on whether the program is a qualifying educational program and whether the qualifying educational institution considers the student full-time.
Reasons FOR POSITION TAKEN
Wording of 118.6(2) requires "enrolled in a qualifying educational program as a full-time student at a designated educational institution.
XXXXXXXXXX 2001-008347
C. Tremblay, CMA
XXXXXXXXXX , 2001
Dear XXXXXXXXXX:
Re: Education Tax Credit
This is in reply to your letter of March 16, 2001, requesting specific information on the criteria required to meet full-time status in order to be entitled to claim the education tax credit.
With respect to the full-time education tax credit, the Income Tax Act (the "Act") states that the credit is based on "the number of months in the year during which the individual is enrolled in a qualifying educational program as a full-time student at a designated educational institution". To be a "qualifying educational program", a program must run at least three consecutive weeks and must require instruction or work in the program of at least ten hours a week throughout its duration.
Subsection 118.6(2) of the Act authorizes a student to claim an education tax credit for each month in the calendar year during which the student is enrolled in a qualifying educational program as a full-time student at a designated educational institution. While the terms "designated educational institution" and "qualifying educational program" are defined in subsection 118.6(1) of the Act, the term "enrolled...as a full-time student" is not defined in the Act. However, paragraphs 5 to 7 of IT-515R2 (copy enclosed) provide general comments regarding the Canada Customs and Revenue Agency (the "CCRA") interpretation of this term.
As indicated in paragraph 5 of IT-515R2, the requirement for enrolment as a full-time student at a designated educational institution must ultimately be met on the basis of the facts of each case. Thus, the CCRA must generally rely on the institution's determination as to whether an individual is registered as a full-time student.
In our view, the university is best prepared and responsible for making a reasonable estimate of the time normally expected and required of a student during a particular program for work assignments or other items. Instruction or work includes lectures, practical training, and laboratory work. It also includes research time spent on a post-graduate thesis; however, study time is not considered to be a component of the extra work outside the classroom or laboratory. The institution may also augment the student's time by a reasonable estimate of time outside the classroom and laboratory normally required and expected of a post-graduate student for work assignments or other items as listed in paragraph 11 of IT-515R2.
As to the specific criteria required by the CCRA for full-time status, in our opinion, where a post-graduate student meets the conditions of paragraph 6 of IT-515R2, the CCRA will normally regard that student as being a full-time student at that institution, provided that the post-graduate student also meets the "qualifying educational program" requirement, that is, at least ten hours per week throughout the duration of the course not simply for a minimum of three consecutive weeks. Since, in your situation your course is for 24 weeks, the requirement of 10 hours per week is required for 24 weeks.
If, based on our above comments, you conclude that your status should be changed; your concerns should be relayed to the XXXXXXXXXX. If the university agrees that your status should be revised and provides you with certification to this effect, you may submit this documentation, along with a request for adjustment to your tax returns for the relevant taxation years, to your local tax services office for consideration.
We trust our comments are of assistance
Yours truly,
Steve Tevlin
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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