How do the tax credits for paying tuition work? I have about 15,000 leftover from last year.
If I make 50k in 2010, would I then only be taxed on 35k?
If I make 50k in 2010, would I then only be taxed on 35k?
It does not reduce your taxable income such as RRSPs do, it just applies a credit against the taxes you owe.
You would still be taxed on 50K, but a credit would be applied to the taxes you have to pay.
You would still be taxed on 50K, but a credit would be applied to the taxes you have to pay.
Djino
That's definitely not how it works. Your tuition credit is split into 2, federal and provincial which reduce the respective tax payable to 0 if applicable if you have enough tuition credits.
in this case your credits will have to be used when you do your taxes and will be reduced to 0.
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