Canadian student in the U.S. - tuition

Hi David -

I sure would appreciate your opinion on this one.

I am a Canadian student at a community college (not a university) in the U.S. My visa status is F-1. I am working towards an Associate degree, not a Bachelor's degree.
Can I deduct my tuition fees on my Canadian income tax? Form TL11A is titled "Tuition and Education Amounts Certificate - University Outside Canada" and I sure hope that it applies to me even though I am at a community college.
The other form - TL11D - is for a deemed resident of Canada, and seems to include both universities and colleges. Would I be considered a "deemed resident"? I am away for a few years but will be returning to Canada at the end of my course.

There has to be some way that I can claim $8000 of tuition fees against my Canadian income!

Thanks for your help!

david ingram replies:

If you are commuting to the US college, you can deduct the tuition on form TL11C However, I get the idea that you are in living in the USA and if so, you can not be commuting on a daily basis.

http://www.cra-arc.gc.ca/E/pbg/tf/tl11c/tl11c-05e.pdf

If you are living in the US and not commuting, then only tuition paid to a University is deductible. Some US colleges are on a CRA list which gives them University status. It really depends upon whether or not they have a degree program and not just a Diploma program.

The CRA now refers to the "Accredited Institutions of Postsecondary Education" published by the American Council on Education, which we use as an authority when determining whether an educational institution in the United States is recognized for purposes of paragraph 118.5(1)(b) or 118.5(1)(c), respectively

You can find the American Council on Education at http://www.acenet.edu//AM/Template.cfm?Section=Home - However, I expect that your institution knows already whether or not it is on the "List".

The Big question is whether you are a deemed or factual resident of Canada. Although most of the time, Canadian Students in the USA ARE deemed residents of Canada, that usually occurs where they have kept their Provincial health plan alive, have kept their provincial driver's licence and have their car registered in their home province.

If, on the other hand, you are going to school in Phoenix (or anywhere else in the US), have purchased or joined a local health plan, taken out an Arizona driver's licence and car licence and are intending to stay in the US after graduation, then you may no longer be a deemed resident of Canada and not taxable in Canada.

Since you mention Canadian Income however, there are other problems. If it is earned income because you are still consulting to Canadian businesses, it may or may not be taxable in Canada. If you are doing all the work in the US, it would not be taxable in Canada if you are a resident of the US.

If it is taxable in Canada, the $8,000 of tuition is not deductible if you are going to a non-accredited college.

You should likely consult someone like myself about your residential status.

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