2011 Federal Budget—Education Tax Measures—Study Abroad

The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011.

Various education tax measures have been modified in recognition of the fact that programs at many foreign universities are based on semesters that are shorter than 13 weeks. Currently, a Tuition Tax Credit is available to Canadian students in attendance at a foreign university, if the student is enrolled in a course that lasts for at least 13 consecutive weeks. The student would also be able to claim the Education Tax Credit and the Textbook Tax Credit, and receive Educational Assistance Payments from a Registered Education Savings Plan. However, many programs at foreign universities are based on shorter semesters, so that Canadian students are ineligible for tax recognition of education costs that would otherwise be eligible. Effective for fees for courses taken in 2011 and subsequent taxation years, the minimum course duration requirements will be reduced to three consecutive weeks.



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