Do I owe the government?

August 9, 2010 7:28 PM

My employer is paying my tuition, and told me that I could claim the amount as a deduction, because it's a taxable benefit. I did, and now I've received a letter from Revenue Canada asking me to submit a T2202 form and to tell them who had given me money for my tuition. (I filed online, which is why I hadn't submitted the T2202 before.) Was I wrong to claim this deduction? (You aren't my tax lawyer, but you know about these things.)
posted by smilingtiger to Law & Government (8 answers total)

If the tuition is related to your job, then no, you don't get taxed on the money your employer paid for you, and you don't get the deduction (your employer does). I am not an accountant.
posted by jeather at 7:36 PM on August 9, 2010

Response by poster: Thanks for your reply, but the thing is, the accountant at my company said that I did get taxed on the tuition money, and that that was why I could claim it. Hence my confusion.
posted by smilingtiger at 7:51 PM on August 9, 2010

Yes, if you are taxed on the money that the company pays for the tuition, you can claim the deduction (assuming it is eligible). It is possible that the accountant at your company is mistaken about whether or not you were taxed on the tuition benefit.
posted by jeather at 7:59 PM on August 9, 2010

Link to T2202 Form.
"This form is used to certify a student's eligibility for the education and textbook amounts and to show the maximum tuition, education, and textbook amounts that a student can transfer to a designated individual"

If your employer paid it, you can't claim it as a deduction, IANYA
posted by BozoBurgerBonanza at 8:02 PM on August 9, 2010

Not sure about your particular situation, but just wanted to add that I've been asked to send in a T2202 every time I've filed online and claimed a deduction, so I don't think it's all that uncommon (n=1).
posted by greatgefilte at 8:15 PM on August 9, 2010

Agree with greatgefilte, I've been asked to mail in my T2202 multiple times when filing on line, so that in itself isn't unusual or indication that you've done wrong. They've never given me a problem with it after sending it in, but of course my situation is different.

After having dealt with Revenue Canada several times while sending in proof of things and what not, I've found them to generally be pretty nice about it. I'd just send them the T2202, tell them that your employer paid the tuition and let them sort whether it's right or wrong.
posted by Diplodocus at 8:20 PM on August 9, 2010

According to CRA, fee are NOT deductible if "They are paid on the student's behalf by his or her employer and are not included in the student's income."
But they WERE included in your income as a taxable benefit so you can deduct.
posted by canoehead at 9:03 PM on August 9, 2010

Best answer: I've had to mail in T2202As a ton of times. It's standard. They know people scam with it. They want to know who paid it, in case your parents are going to claim it back and they need to audit them and so on. If it was your employer, they will check to see if it was in your income.

Mail it in. Include a letter saying your employer's payment was included in your T4.

I am not an accountant.
posted by acoutu at 9:22 PM on August 9, 2010