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Ethical question regarding tuition tax credit

P

Patt

Diamond Member
Through my work, I've been taking University-level online courses. I am the registered student, but my department's administrative assistant uses a credit card to pay for the course. Last year I took two courses (in Project Management) for $2100 each. Yesterday I received the tuition credit note to be used with my taxes for $4200.

In Canada I believe we get approximately 32% of tuition fees back as a tax break, which in my case will total to $1400 🙂

Now, does anyone with accounting knowledge know if that is something the company could claim, or is something that only an individual can claim? I'm hoping it is only valid for me, especially as I'm taking these courses (required for work) on my own time. If I told no one, I'm sure I could just 'get away with it', but I want to do the right thing.
 
Don't try to get away with anything when it comes to taxes. Forget right or wrong, figure out what is lawful.
 
Originally posted by: Patt
Through my work, I've been taking University-level online courses. I am the registered student, but my department's administrative assistant uses a credit card to pay for the course. Last year I took two courses (in Project Management) for $2100 each. Yesterday I received the tuition credit note to be used with my taxes for $4200.

In Canada I believe we get approximately 32% of tuition fees back as a tax break, which in my case will total to $1400 🙂

Now, does anyone with accounting knowledge know if that is something the company could claim, or is something that only an individual can claim? I'm hoping it is only valid for me, especially as I'm taking these courses (required for work) on my own time. If I told no one, I'm sure I could just 'get away with it', but I want to do the right thing.
Click to expand...

Your company will be filing that expense, if you claim it, you run the risk of CRA auditing your ass and then you are really screwed.

Bottom line, you did not pay for the course, you do not get to claim the expense.
 
Originally posted by: sdifox

Your company will be filing that expense, if you claim it, you run the risk of CRA auditing your ass and then you are really screwed.

Bottom line, you did not pay for the course, you do not get to claim the expense.
Click to expand...

Will they really be filing that expense? I don't think so, they don't normally file anything on it, and their name is not mentioned anywhere in the student documentation. I'm wondering if they are even eligible for it?
 
The expense wasn't coming out of your pocket so what makes you think that you are entitled to the tax break? The simple answer is to contact a local CPA and ask them about what is legal.
 
Originally posted by: Patt
Originally posted by: sdifox

Your company will be filing that expense, if you claim it, you run the risk of CRA auditing your ass and then you are really screwed.

Bottom line, you did not pay for the course, you do not get to claim the expense.
Click to expand...

Will they really be filing that expense? I don't think so, they don't normally file anything on it, and their name is not mentioned anywhere in the student documentation. I'm wondering if they are even eligible for it?
Click to expand...

OF course they will... No sane company give up tax credit.
 
In the US, I don't recall the Federal 1120 having that credit available to them. Could be tacked on I guess.
 
Is the money paid to the college counted as income on your end of year? Then hell yeah claim it. If it is not being counted as income then No.
 
Are you sure that your tax forms at the end of the year won't show the tuition as part of your income? Often employers will put things that they pay for on your behalf on there as income.
 
Originally posted by: Patt
Originally posted by: sdifox

Your company will be filing that expense, if you claim it, you run the risk of CRA auditing your ass and then you are really screwed.

Bottom line, you did not pay for the course, you do not get to claim the expense.
Click to expand...

Will they really be filing that expense? I don't think so, they don't normally file anything on it, and their name is not mentioned anywhere in the student documentation. I'm wondering if they are even eligible for it?
Click to expand...

They've got something you don't. That have proof they paid it.
 
Originally posted by: Bryophyte
Are you sure that your tax forms at the end of the year won't show the tuition as part of your income? Often employers will put things that they pay for on your behalf on there as income.
Click to expand...

then the company would not be paying for it.
 
Originally posted by: Patt
Originally posted by: sdifox

Your company will be filing that expense, if you claim it, you run the risk of CRA auditing your ass and then you are really screwed.

Bottom line, you did not pay for the course, you do not get to claim the expense.
Click to expand...

Will they really be filing that expense? I don't think so, they don't normally file anything on it, and their name is not mentioned anywhere in the student documentation. I'm wondering if they are even eligible for it?
Click to expand...

Darn right they will be filing for that expense. I pay for education for many of my employees, and I definitely claim the cost as a business expense on the company tax return. If you claim it as well, then you run the risk of being audited and having to pay the tax, plus a penalty.
 
Originally posted by: Patt
Originally posted by: sdifox

Your company will be filing that expense, if you claim it, you run the risk of CRA auditing your ass and then you are really screwed.

Bottom line, you did not pay for the course, you do not get to claim the expense.
Click to expand...

Will they really be filing that expense? I don't think so, they don't normally file anything on it, and their name is not mentioned anywhere in the student documentation. I'm wondering if they are even eligible for it?
Click to expand...

if you're seriously going to ask this question after all of the great advice that was just given, then please be our guest and file for it. just remember that butch will be waiting for your asshole after you get nailed by the IRS.
 
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