Income Tax Act

Marginal note:Unused tuition and education tax credits

• 118.61 (1) In this section, an individual’s unused tuition and education tax credits at the end of a taxation year is the amount determined by the formula

  A + (B - C) - (D + E)

  where

  A

  is the individual’s unused tuition and education tax credits at the end of the preceding taxation year;

  B

  is the total of all amounts each of which may be deducted under section 118.5 or 118.6 in computing the individual’s tax payable under this Part for the year;

  C

  is the lesser of the value of B and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118, 118.01, 118.3 and 118.7);

  D

  is the amount that the individual may deduct under subsection 118.61(2) for the year; and

  E

  is the tuition and education tax credits transferred for the year by the individual to the individual’s spouse, common-law partner, parent or grandparent.

• Marginal note:Deduction of carryforward

  (2) For the purpose of computing an individual’s tax payable under this Part for a taxation year, there may be deducted the lesser of

  • (a) the individual’s unused tuition and education tax credits at the end of the preceding taxation year, and

  • (b) the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118, 118.01, 118.3 and 118.7).

• Marginal note:Unused tuition and education tax credits at the end of 2000

  (3) For the purpose of determining the amount that may be deducted under subsection (2) in computing an individual’s tax payable for a taxation year that begins after 2000, the individual’s unused tuition fee and education tax credits at the end of the individual’s 2000 taxation year is deemed to be 16/17 of the amount that would be the individual’s unused tuition and education tax credits at the end of that year if this section were read without reference to this subsection.

• Marginal note:Change of Appropriate Percentage

  (4) For the purpose of determining the amount that may be deducted under subsection (2) in computing an individual’s tax payable for a taxation year, in circumstances where the appropriate percentage for the taxation year is different from the appropriate percentage for the preceding taxation year, the individual’s unused tuition fee and education tax credit at the end of the preceding taxation year is deemed to be the amount determined by the formula

  A/B × C

  where

  A

  is the appropriate percentage for the current taxation year;

  B

  is the appropriate percentage for the preceding taxation year; and

  C

  is the amount that would be the individual’s unused tuition and education tax credits at the end of the preceding taxation year if this section were read without reference to this subsection.