# A question regarding a transfer of unused education credits, and property tax..



## Kenneth8587 (Jul 22, 2012)

I’ll simplify my question into bullet points.

- I am a recent graduate who's trying to transfer my unused education credits via Schedule 11(I think.) Problem is, I have already received Notice of Assessment in May of 2012. So I'm not sure if I can re-submit this year.

- If I successfully transfer my credits to my mother, could the credits cover her property tax?


Thank you for your time!


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## stardancer (Apr 26, 2009)

If you have already filed your 2011 tax return, you have to do a T1ADJ for your return; complete the T1ADJ, schedule 11 and attach the T2202a. You can only transfer the credits to your mother if you have them left, and only up to $5000 (federal) Make sure you also do the provincial schedule to transfer the provincial amount. Then wait a few months while CRA deals with the adjustment. 

When you have received a notice stating if/whether the transfer is successful, complete a T1ADJ for your mother (which she signs), send it in along with a copy of your letter. It will take them time to adjust her return.

Whether it covers her property taxes or not is unknown as any refund she might get depends on all her other information. At any rate, it won't be immediately.


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## TaxGuy (Apr 7, 2009)

To be clear, property tax and income tax are different. If she gets a refund for the income tax, she will have to deposit it to her bank and then pay the property tax.


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## Kenneth8587 (Jul 22, 2012)

TaxGuy said:


> To be clear, property tax and income tax are different. If she gets a refund for the income tax, she will have to deposit it to her bank and then pay the property tax.


Thank you for the replies. However I'm still remaining with questions. I know that the credits are transferable. However, I don't quite understand exactly how the credits work once it is transferred. Do they come in as the same way regular tax return cheques come in on monthly basis?


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## Eclectic12 (Oct 20, 2010)

Kenneth8587 said:


> ... However I'm still remaining with questions. I know that the credits are transferable. However, I don't quite understand exactly how the credits work once it is transferred.
> 
> Do they come in as the same way regular tax return cheques come in on monthly basis?


I don't believe so. 

It's been many moons ago that I transferred my educations amounts to my father as I didn't have enough income to use them on my income tax return. In that case, I filled out a form to indicate the amount that was to be transferred to my father. I then told my father how much the amount was. He then put the education amount into his income tax return, as if he had attended the education.

This reduced his income so that he had paid more taxes than he owed. This generated a once a year income tax refund - where the education amount that was transferred increased the overall refund. (He was going to get a refund anyway due to charitable donations.)

The property taxes are assesed and collected by the city or region so as far as I know, the two transactions are separate. 

It is similar to receiving an income tax refund, depositing it to one's chequing account and then writing a cheque to pay the phone or cable bill. The difference is that you are transferring the credit to your mother, who may receive an income tax refund as a result. If so, she can then use this money to pay the property taxes.


Cheers


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## stardancer (Apr 26, 2009)

Tuition and education credits are NON-REFUNDABLE CREDITS; they reduce your tax owing which may or may not result in a (larger) refund. They are NOT paid out in cash to you or anyone you transfer to. They stay on your tax return which is Federal.

Property taxes are municipal, and you must pay them whether you get a tax refund or not.


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## MrMatt (Dec 21, 2011)

Kenneth8587 said:


> Do they come in as the same way regular tax return cheques come in on monthly basis?


AFAIK Tax return refund checks don't come monthly.

I think you are thinking of something else.


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## stardancer (Apr 26, 2009)

If Kenneth8587 lives in Ontario, he is probably confusing tuition credits with the Ontario Trillium Benefit. The OTB is new for 2011 and is based on property taxes or rent paid, and residence, in Ontario. This information goes on the ON-Ben form, and she will receive a monthly cheque (July 2012-June 2013) if she is eligible for anything.

Tuition/education credit transfer has nothing to do with the OTB.


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