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s. 118.61

PART I — Income Tax · DIVISION E — Computation of Tax · SUBDIVISION A — Rules Applicable to Individuals · Annual Adjustment of Deductions and Other Amounts

Unused tuition, textbook and education tax credits

Not yet annotated · Text current to 2026-06-21 · section last amended 2026-03-26

Current text

(1)

In this section, an individual’s unused tuition, textbook and education tax credits at the end of a taxation year is the amount determined by the formula

A + (B - C) - (D + E)

where

A

is the amount determined under this subsection in respect of the individual at the end of the preceding taxation year;

B

is the total of all amounts each of which may be deducted under section 118.5 in computing the individual’s tax payable under this Part for the year;

C

is the lesser of the value of B and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of subsections 118(1) to (10) and sections 118.01 to 118.07, 118.3 and 118.7);

D

is the amount that the individual may deduct under subsection (2) for the year; and

E

is the tuition tax credit transferred for the year by the individual to the individual’s spouse, common-law partner, parent or grandparent.

Deduction of carryforward

(2)

For the purpose of computing an individual’s tax payable under this Part for a taxation year, there may be deducted the lesser of

(a)

the amount determined under subsection (1) in respect of the individual at the end of the preceding taxation year, and

(b)

the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of subsections 118(1) to (10) and sections 118.01 to 118.07, 118.3 and 118.7).

(3)

[Repealed, 2007, c. 2, s. 24]

Change of appropriate percentage

(4)

For the purpose of determining the amount that may be deducted under subsection (2) in computing an individual’s tax payable for a taxation year, in circumstances where the appropriate percentage for the taxation year is different from the appropriate percentage for the preceding taxation year, the individual’s unused tuition, textbook and education tax credits at the end of the preceding taxation year is deemed to be the amount determined by the formula

A/B × C

where

A

is the appropriate percentage for the current taxation year;

B

is the appropriate percentage for the preceding taxation year; and

C

is the amount that would be the individual’s unused tuition, textbook and education tax credits at the end of the preceding taxation year if this section were read without reference to this subsection.

Source: Justice Laws Website. Not an official version.

Historic text

Immediately preceding version, in force from 2017-01-01 to 2026-03-25:

Show the text in force 2017-01-01 to 2026-03-25


Unused tuition, textbook and education tax credits

  • 118.61 (1) In this section, an individual’s unused tuition, textbook and education tax credits at the end of a taxation year is the amount determined by the formula

    A + (B - C) - (D + E)

    where

    Ais the amount determined under this subsection in respect of the individual at the end of the preceding taxation year;Bis the total of all amounts each of which may be deducted under section 118.5 in computing the individual’s tax payable under this Part for the year;Cis the lesser of the value of B and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118 to 118.07, 118.3 and 118.7);Dis the amount that the individual may deduct under subsection (2) for the year; andEis the tuition tax credit transferred for the year by the individual to the individual’s spouse, common-law partner, parent or grandparent.

  • Deduction of carryforward

    (2) For the purpose of computing an individual’s tax payable under this Part for a taxation year, there may be deducted the lesser of

    • (a) the amount determined under subsection (1) in respect of the individual at the end of the preceding taxation year, and

    • (b) the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118 to 118.07, 118.3 and 118.7).

  • (3) [Repealed, 2007, c. 2, s. 24]

  • Change of appropriate percentage

    (4) For the purpose of determining the amount that may be deducted under subsection (2) in computing an individual’s tax payable for a taxation year, in circumstances where the appropriate percentage for the taxation year is different from the appropriate percentage for the preceding taxation year, the individual’s unused tuition, textbook and education tax credits at the end of the preceding taxation year is deemed to be the amount determined by the formula

    A/B × C

    where

    Ais the appropriate percentage for the current taxation year;Bis the appropriate percentage for the preceding taxation year; andCis the amount that would be the individual’s unused tuition, textbook and education tax credits at the end of the preceding taxation year if this section were read without reference to this subsection.
  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1998, c. 19, s. 28
  • 2000, c. 12, s. 142
  • 2001, c. 17, s. 99
  • 2006, c. 4, s. 65
  • 2007, c. 2, s. 24
  • 2009, c. 31, s. 6
  • 2011, c. 24, s. 31
  • 2014, c. 20, s. 12
  • 2016, c. 7, s. 17

This version on Justice Laws

Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 118.61 links to the one before it.

Enacting and amending legislation

  • 1998, c. 19, s. 28; 2000, c. 12, s. 142; 2001, c. 17, s. 99; 2006, c. 4, s. 65; 2007, c. 2, s. 24; 2009, c. 31, s. 6; 2011, c. 24, s. 31; 2014, c. 20, s. 12; 2016, c. 7, s. 17
  • 2026, c. 3, s. 125

Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.

Cross-references

This section refers to

s. 118s. 118.01s. 118.5

Referred to in

s. 128

References are generated from the statutory text and list other sections of the Act only.

Citation

Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 118.61.