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Tuition Transfer - Son and parent reside in different provinces - calculation errors


#1

I have a scenario where the son attends University full-time in Toronto ON, resides in ON full-time, and the parent lives and works in Manitoba. On the Ontario S11, the maximum transfer of $6,922 is calculated, and this amount is claimed on the parents return.

For Manitoba, the maximum provincial transfer is calculated as the lesser of $5,000 and the tuition and education amount, and would be reduced by the tax that would be payable in MB if the student resided here. (In my case the amount worked out to $5,000.) (Reference 4.6(14.1) Manitoba Income Tax Act)

In this case, the program should be limiting the provincial transfer to the maximum amount claimable in Manitoba of $5,000 on both the son’s and the parents return.

I corrected the program by over-riding the tuition transfer amount on both returns. I also had to override the son’s client letter to show a provincial tuition transfer of $5,000, as the letter did not recognize my over-ride.

Just putting this out there in case anyone else runs into similar situations.

I called the CRA as the Manitoba guide said, and went through three levels of agents, and still couldnt get a correct answer. In the time I spent on hold I was able to properly research the answer on my own.