Education Credit for Canadian College

[neilbrink]

I have a TP who has a child attending college in Canada. I am reading the instructions for taking the Education credits, and the information given for an eligible educational institution is "any accredited public, nonprofit, or proprietary (private) college, university, vocational school, or other postsecondary institution. Also, the institution must be eligible to participate in a student aid program administered by the Department of Education. Virtually all accredited postsecondary institutions meet this definition." Are any colleges that are not in the United States eligible educational institutions for the purpose of this credit? Thanks. Neil

[TAXBILLY]

>>Are any colleges that are not in the United States eligible educational institutions for the purpose of this credit?<<

I would think that the college could answer that question.

taxbilly

[kcjenkins]

Yes, lots of them are. The list is available on the FASBE website.

http://www.fafsa.ed.gov/FOTWWebApp/FSLookupServlet

Quoting from our friend Tim on this very subject:

ssuming that the school qualifies, I wish to point out two small cautions.

Tuition fees under Canadian Tax Law are not Tuition fees under US Tax Law.

You may not use the Tuition slip provided by the Canadian school (namely,

the T2202A) for US tax purposes but must go back to the original invoice,

remove the unqualified expenses, and convert to US dollars, probably using

the spot rate. I believe that the US is cash basis for tuition as well while

Canada is accrual for tuition.

Your client's child will probably be advised by her/his fellow students to

file a Canadian Tax Return but the benefits are not necessarily in their

favour. Principally because this student may be considered a non-resident of

Canada, even though they are present in Canada - Again, residency rules for

Canada are different than the US.

Good Luck!

Tim Parris, in Canada

Phone (613) 216-2028 - Ottawa

Phone (604) 628-7072 - Vancouver

Fax (866) 380-5270