There are numerous funding options to help make your professional studies more affordable, including financing available through Knowledge Bureau, funding through each student’s own tax-assisted savings plans, and tax assistance through various CRA tax incentives. However, what can be deducted depends on who you are and what programs you will be involved in.
Knowledge Bureau is certified by the Minister of Employment and Social Development Canada (ESDC) as an educational institution providing courses that furnish a person with skills for or improve a person’s skills in, an occupation. An occupation, for this purpose, is considered to be employment as well as a profession, vocation, or trade.
Continuing Education/Continuing Professional Development
Knowledge Bureau also welcomes professionals who seek an academic path to CE/CPD. Choose CE Summits, Distinguished Advisor Conference, online certificate courses or CE Savvy PD short courses.
Tuition Fee Deductibility
Tuition fees paid to Knowledge Bureau qualify for the tuition fee credit, and for some students the Canada Training Credit which provides a refundable credit of up to 50% of tuition. See calculation below:
Tuition Fees = $3990
plus GST (5%) = $4189.50
CTC Calculation =
Lesser of 50% of Tuition = $2094.75 or $1000 (eligible per tax filings)
CTC Claim $1000 (Note
- if no taxes payable, this $1000 CTC is fully refundable when you file your
tax return)
Plus Claim a Tuition Amount for the Remaining Fees:
Tuition Credit $3189.50
($4189.50 less CTC claimed $1000 -T2202 required)
Tax benefit $765.50
($3189.50 x 24% - varies with province of residence)
Total Tax benefit (Tuition amount plus CTC) =
$1765.50 (42% of tuition fees payable)
Net cost of tuition $4189.50 - $1765.50 = $2424.00
RRSP Lifelong Learning Plan
Knowledge Bureau will consider the student to be in full-time attendance for purposes of funding under the RRSP Lifelong Learning Plan if that student enrolls in a Designation Program. To qualify, the Designation Program must be completed within a six-month enrolment period. Otherwise, the student is considered to be enrolled in part-time attendance with Knowledge Bureau.
Expense Deductibility
In some cases, self-employed students may claim the cost of training as a business deduction. Students are referred to IT 357R2 for CRA’s interpretation of the rules. Of specific note in the bulletin: training costs are not deductible as current expenses if they are capital expenditures (that is, they result in a lasting benefit to the taxpayer i.e., where a new skill or qualification is acquired (ie. training as a specialist). In this case, students should consider using the tuition fee credit instead. However, if training is to maintain, update or upgrade an existing skill or qualification, the related costs are deductible as a current expense. Examples of fully deductible programs: A professional development course is taken as required or recommended by a professional body to maintain professional standards, a tax course is taken by a lawyer or accountant who is qualified to do tax work, whether or not he or she has previously been actively involved in such work. Any portion of costs that are personal or unreasonable is not deductible.
Free Trial Period
Students may withdraw from the program at no charge within the first seven (7) days of registration or after completing one chapter of the course (whichever comes first). This is the free trial period.
Extensions
Students of online certificate courses may request extensions at the end of each study period of three months. Extensions may be purchased at a cost of $99.00 for each extension of 1 month or $295 for an extended 3 month period.
Resumed Studies
Re-enrolment after Course Expiry: After an absence of six months or more, students may re-register with a re-enrolment fee of $295. New course materials, study periods and Virtual Campus access will be granted.
Rewrites: Our rewrite policy is discussed in greater detail in our course material. One rewrite attempt will be allowed within a month of unsuccessful testing. Rewrite fees are $295 per exam.