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Thread: tuition

  1. #1
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    Default tuition

    Hi,

    I enrolled in a post secondary private school.
    I left after one month due to issues at the school. The Dean refused my refund amount ($16000). He then closed the school.

    My case is now being handled by a lawyer b/c the Ministry of Education told my classmates & myself (we all left & we all never saw our $$ again) that we'd be entitled to a full refund.
    They have since went back on their word leaving us to seek our money through the legal system.

    My question is, do I file taxes in case the ministry says "no" on our refund. This thing could be tied up in the system for a while. What happens if they only issue us a partial refund. I have no way of obtaining a tuition receipt & the ministry has said that they are not responsible & the Dean (Dr) won't reply to any mail (registered). If I'm not given a full refund & I'm out that money, this equates to a $1000 roughly on my DH's taxes. Could I roll it over to next year in case I get some sort of receipt?

    What do I do?

  2. #2
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    strongmommy's Avatar
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    Man - sorry to hear about losing this kind of money and that things haven't worked out the way you expected.

    If you have some sort of receipt (did you get something when you actually paid indicating you had paid in 2008?), and the school was offering courses that trained you for some type of work (which I assume is the case) then I'd claim them on this year's return. The receipt doesn't have to be on a T2202 but should be a receipt that lists the name of the school, the amount of tuition and the courses you were registered for.

    Technically you're entitled to the education credit (the tuition deduction) for money you paid to a qualified educational institution for services that improve your ability to work. There is no complete "list" of all the private schools in Canada that are considered eligible but CRA's position is that if the school offers courses that require you have highschool credits to get into, or it offers work specific training then it likely qualifies. The tough part of your situation is that you didn't spend the money to get an education - since you stopped / the school closed. It gets grey in this area whether it's deductible - but if I were you I'd let CRA make the determination.

    Claiming it now then getting refunded later means either reversing the credit (adjusting your return to remove it) OR including the reimbursement in income. Neither of these is tough to do.

    $16,000 is alot of money and having the credit is worth over $3300 in actual tax savings to you. This credit can be carried forward if you don't have enough taxable income this year to use it.

    Good luck - and I really hope you get your money back. Cash in your hand is ALWAYS better than a tax deduction.

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