A student may transfer all or part of their tax credit for tuition or examination fees to another individual, provided the transferred portion applies to fees paid in the tax year and the recipient is one of the following:
- The student’s father or mother.
- The student’s grandfather or grandmother.
- The spouse of the student’s grandfather or grandmother.
- The father or mother of the student’s spouse.
- The grandfather or grandmother of the student’s spouse.
If the student chooses to transfer all or part of their tuition or examination fee credit to you, only you may claim the amount transferred on your tax return. The transferred credit cannot be shared between multiple individuals.
In Quebec, tuition fees reported in Box B of the RL-8 slip generate a 20% provincial tax credit, which can only be claimed by the student. Although unused amounts can be carried forward indefinitely, they cannot be transferred to another person.
However, Quebec’s Box A amount for post-secondary studies provides a separate credit that can be claimed by a parent for a dependent under 18, or transferred by a student aged 18 or older using Schedule S.
Federal Tuition Tax Credit vs Quebec Provincial Tuition Tax Credit
| Feature | Federal Tuition Tax Credit | Quebec Provincial Tuition Tax Credit |
|---|---|---|
| Eligibility to Transfer | Yes. Up to $5,000 of the current year’s unused tuition amount can be transferred to a spouse, common-law partner, parent, or grandparent. | No. Unused tuition fees cannot be transferred. |
| Carry Forward | Unused tuition amounts can be carried forward indefinitely by the student until used. | Unused tuition amounts can also be carried forward indefinitely by the student. |
| Claiming | Based on the T2202 slip issued by the educational institution. Transfers are made through the student’s return and claimed by the recipient. | Based on the RL-8 slip, Box B (Tuition). Quebec also offers a separate post-secondary studies credit (Box A), which may be transferable depending on the student’s age. |
New Immigrants and Taxes
New immigrants to Canada are generally considered residents for tax purposes from the date they establish significant residential ties in Canada, such as a home, spouse, or dependants.
From that date, they are required to report their worldwide income to the Canada Revenue Agency (CRA) and may claim applicable federal and provincial tax credits.
Income earned before becoming a resident is not taxable in Canada, but it may be required for calculating certain credits or benefits.
Tax Residency and Filing
Becoming a resident occurs when significant residential ties are established in Canada, such as a home, spouse, or dependants. The Canada Revenue Agency (CRA) recognizes this as the date of arrival.
The first tax return is typically filed by April 30th, 2025, for those who arrive in 2024. Only income earned after the date of arrival in Canada is reported; however, pre-arrival worldwide income must be declared to determine eligibility for certain tax credits.
Benefits and Credits for Newcomers
Certain benefits can be applied for immediately upon arrival in Canada, even before filing a first tax return. However, annual filing is required to continue receiving payments.
The Canada Child Benefit (CCB) provides tax-free monthly payments to families with children under 18 and requires completion of Form RC66.
The GST/HST Credit offers tax-free quarterly payments to low- and modest-income individuals and families. Applicants must complete Form RC151.
In addition, eligibility for provincial and territorial benefits, such as Quebec’s sales tax credit, is often assessed automatically when applying for federal benefits.
Important Tax Considerations for New Immigrants
- Non-refundable credits: Certain non-refundable tax credits may be prorated in the first year of residency based on the number of days of residence in Canada. The “90% rule” may restrict eligibility if Canadian income represents less than 90% of total worldwide income during the non-resident period.
- Foreign tax credit: Income earned outside Canada that is also taxable in Canada after becoming a resident may qualify for a foreign tax credit to prevent double taxation.
Proration of Non-Refundable Tax Credits for Newcomers and Part-Year Residents
For new residents of Canada, certain non-refundable tax credits may be prorated based on the number of days of Canadian residency during the first year.
The full amount of these credits can only be claimed if the “90% rule” is met. Both the Canada Revenue Agency (CRA) and Revenu Québec apply similar proration rules on the federal and provincial tax returns.
The 90% Rule
The full amount of certain non-refundable tax credits can be claimed if 90% or more of total net world income for the portion of the year prior to becoming a resident was earned from Canadian sources.
The CRA uses this rule to determine whether federal non-refundable tax credits must be prorated. Revenu Québec applies a comparable rule to decide whether similar provincial credits should be reduced.
When Proration Applies
If the 90% rule is not met, non-refundable tax credits are prorated according to the number of days of Canadian residency during the tax year.
Federal Credits Subject to Proration Include:
- Basic personal amount
- Age amount
- Spouse or common-law partner amount
- Amount for an eligible dependant
- Canada caregiver amount
- Other non-refundable credits
Quebec Credits Subject to Proration Include:
- Basic personal amount
- Age amount
- Amount for a person living alone
- Amount for a dependant
- Amount for a child under 18 enrolled in post-secondary studies
- Amounts for caregivers
How Is Proration Calculated?
Proration is calculated using the following formula:
Maximum credit × (Number of days resident in Canada ÷ 365)
Example:
Alexandre arrived in Canada on May 13, 2024, and became a resident on that date.
- Days resident in 2024: 232 (May 13 to December 31)
- Total days in 2024: 365
Prorated basic personal amount:
($15,705 × 232) ÷ 365 = $9,982.36
Therefore, the basic personal amount available for 2024 is $9,982.36.
New immigrants must report worldwide income for the entire year, including income earned before arriving in Canada. This information allows the CRA and Revenu Québec to determine whether the 90% rule is met. If not, the value of non-refundable tax credits will be reduced in proportion to the residency period in Canada.
Federal vs Québec Non-Refundable Tax Credits Comparison
| Credit | Federal (CRA) | Federal Rate | Revenu Québec | Québec Rate | Key Difference |
|---|---|---|---|---|---|
| Basic Personal Amount | $15,705 | 15% | $18,056 | 14% | Québec amount is higher, but the rate is lower. Net provincial credit is approximately $2,528 compared to federal approximately $2,356. |
| Age Amount (65+) | Up to $8,790 (reduced as income rises) | 15% | Own Québec amount (different thresholds and reductions) | 14% | Both provide an age credit, but calculations and income thresholds differ. |
| Spouse / Common-law Partner Amount | Base similar to BPA, reduced by spouse’s income | 15% | Québec equivalent credit with different income thresholds and base | 14% | Same purpose but different base amounts and reductions. |
| Disability Amount | $9,872 | 15% | Québec has its own disability credit and supplements | 14% | Both allow a disability credit, but base amounts and conditions differ. |
| First-Time Home Buyers’ Credit | $10,000 × 15% = $1,500 | 15% | Maximum value approximately $1,400 | 14% / Provincial Formula | Both offer a credit, but the federal credit is worth slightly more. |
| Tuition Amount | Eligible tuition × 15% (carry forward/transfer allowed) | 15% | Eligible tuition × 14% (own carry forward/transfer rules) | 14% | Same concept, but Québec’s lower rate reduces the benefit. |
Other Common Credits
Other common credits include pension income, caregiver, medical, donations, CPP/QPP and EI contributions, student loan interest, adoption, employment amounts, and volunteer firefighter credits.
Federal credits are based on federal amounts multiplied by 15%. Québec has equivalents for many of these credits, but with different bases, reductions, or unique provincial credits.
Although the concepts overlap, Québec has some unique senior and caregiver credits.
Posted on 10 July, 2026