# Tuition Reimbursement Question



## DoubleG (Mar 10, 2012)

Hello,

I am a bit confused with CRA's Tuition regulations; especially if the fees are reimbursed.
I see it this way:

Scenario A:
A person studies part-time or full-time. Pays for it (and books), using own funds. 

*Result*:They complete a Schedule 11 and receive tax credits based on how many months they took (using T2202 from the institution).

Scenario B:
A person studies part-time or full-time. Pays for it (and books), using own funds, but is later reimbursed by the employer on the paycheque (it shows as a taxable benefit (?) and the employee pays applicable taxes on it).

*Result*: They complete a Schedule 11 and receive tax credits based on how many months they took (using T2202 from the institution).

Scenario C:
A person studies part-time or full-time. Pays for it (and books), using own funds, and is later reimbursed by the employer on the paycheque (it shows as a non-taxable benefit and the employee pays no taxes on it.)

*Result*: They include the reimbursed amount as Other Employment income. They complete a Schedule 11 and receive tax credits based on how many months they took (using T2202 from the institution).

Scenario D:
A person studies part-time or full-time. Pays for it (and books), using own funds, and is later reimbursed by the employer through a signed cheque. (Employee pays no taxes at this point and this reimbursement does not show up on the pay statement).

*Result*: Employee includes the reimbursed amount as Other Employment income. They complete a Schedule 11 and receive tax credits based on how many months they took (using T2202 from the institution).

I am doubting Scenarios B+C+D. From what I understand, there are no tax credits available in cases when you are reimbursed one way or another. But I am also confused as to when one must enter the reimbursement amount as Other Employment Income: Is it only when they have not paid any taxes on it (Scenarios C, D)?

Thank you in advance!
GG


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## stardancer (Apr 26, 2009)

DoubleG said:


> Hello,
> 
> I am a bit confused with CRA's Tuition regulations; especially if the fees are reimbursed.
> I see it this way:
> ...


From IT-516R2: Tuition fees do not qualify if they are paid by the student's employer and are not included in the student's income. (Not a direct quote)

From IT-515R2: The definition of "qualifying educational program" excludes any program taken during a period for which the student receives income from employment and as a part of the duties of that employment. (not a direct quote)

Note: employment does not mean full/part time jobs taken to support yourself during school; it means working for an employer and taking courses to further yourself in that job.

It does get very confusing, but the above is my take on those scenarios. Also note: if you do claim part tuition due to reimbursement, or claim tuition but no education credits or whatever, CRA will question the discrepancy with the T2202a; if you send a paper return, you can also send a note; but if you efile, be prepared to send a letter explaining your actions later on.


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## DoubleG (Mar 10, 2012)

Thanks very much, your reply was very helpful.


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## cedebe (Feb 1, 2012)

Very confusing indeed. I'm entitled to $1500/yr for 'career development' through work and whenever I've taken a course that qualified for a T2022a, I've always included it on my taxes... despite being reimbursed for the course through my employer. How would the CRA know that someone is being reimbursed by their employer for a course? (The tuition is reimbursed by my employer in full, no tax is taken off as it's not regarded as income.)


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