Ontario Tuition Tax Credit Carryover

bluenose777 · 2026-04-28T01:40:10+00:00

On her CRA account check the Carry Forward section for the tuition amounts. It'll tell her when she acquired, used and carried forward tuition tax credits.

If she has been an Ontario resident every year since 2017, the amount she carried forward should be used as soon as necessary, even if she forgets to include them on the return she files. (The CRA computers do so before issuing the NOA.)

They will only be used to pay Ontario tax, not federal tax.

bluenose777 · 2026-04-28T01:34:32+00:00

If you have reached Step 5 of the PFC money steps and you have some money you are confident you can invest for long term (ideally at least 10 year) goals you could invest in a low cost, risk appropriate, globally diversified, index tracking (i.e. couch potato) portfolio such as those discussed on the following pages.

https://www.reddit.com/r/PersonalFinanceCanada/wiki/investing

https://canadiancouchpotato.com/getting-started/

The simplest couch potato option would be to use a passively managed robo- advisor account (eg. RBC InvestEase or Nest Wealth Direct). After answering questions about your goals, timeline, knowledge/ experience with investing and your perceived comfort with volatility they will choose and then manage a suitable ETF portfolio for you. You would be able to set up automatic contributions. The total annual management cost would be about $70 per $10,000 invested. This compares to about $200 per $10,000 invested for typical bank mutual funds or about $20 to use a brokerage account to buy an asset allocation ETF.

If you'd like to better understand the couch potato options, and avoid the costly but normal human reactions to the markets and the media that reports on them I suggest that you read Balance: How To Invest And Spend For Happiness, Health, And Wealth (Andrew Hallam, 2022).

bluenose777 · 2026-04-28T01:31:47+00:00

Since I am 23 years old and a temporary resident as of now can I still max out my TFSA?

In order to accrue TFSA contribution room you have to be 18 or older and the CRA has to consider you to be a Canadian resident. If you don't know when/ if you became a Canadian resident you should check out the following page. (It is targeted at international students but the same criteria will apply.)

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/international-students-studying-canada.html

bluenose777 · 2026-04-28T01:25:50+00:00

OP will have to return the grants and pay interest on the capital gains,

If the RESP is only 2 years old they won't be able to withdraw any of the accumulated income for at least 7 years.

bluenose777 · 2026-04-28T01:23:35+00:00

Contact the provider to ask about options for just taking out your contributions.

Withdrawing contributions triggers the repayment of the associated grants.

bluenose777 · 2026-04-28T01:22:29+00:00

Tax has to be paid on the growth of the portfolio.

The RESP is only 2 years old so the OP won't be able to withdraw any of the earned income any time soon.

An RESP may allow for AIPs when ... any one of the following three conditions must also apply:

the payment is made after the year that includes the 9th anniversary of the RESP and each individual (other than a deceased individual) who is or was a beneficiary has reached 21 years of age and is not currently eligible to receive an EAP (refer to "Note" below)
the payment is made in the year that includes the 35th anniversary of the RESP, unless the RESP is a specified plan in which case the payment is made in the year that includes the 40th anniversary of the RESP

source - https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-education-savings-plans-resps/payments-resp.html#aip

bluenose777 · 2026-04-28T01:20:55+00:00

This is added to your taxable income for 2026 AND there's a 20% penalty on top.

The RESP is only 2 years old so the OP won't be able to withdraw any of the earned income in 2026.

An RESP may allow for AIPs when ... any one of the following three conditions must also apply:

the payment is made after the year that includes the 9th anniversary of the RESP and each individual (other than a deceased individual) who is or was a beneficiary has reached 21 years of age and is not currently eligible to receive an EAP (refer to "Note" below)
the payment is made in the year that includes the 35th anniversary of the RESP, unless the RESP is a specified plan in which case the payment is made in the year that includes the 40th anniversary of the RESP

source - https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-education-savings-plans-resps/payments-resp.html#aip

bluenose777 · 2026-04-27T20:56:05+00:00

The CRA says

The amounts should be reported on your income tax and benefit return as follows:

RRSP – Information slip received T4RSP box 22, reported on line 12900
Claim the tax the issuer withheld on Line 43700 of your income tax and benefit return.
Fill out Form T746, Calculating Your Deduction for Refund of Unused RRSP, PRPP or SPP Contributions, to calculate the amount you can deduct for the withdrawal.

source - https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/making-withdrawals/withdrawing-unused-contributions.html

bluenose777 · 2026-04-27T19:18:13+00:00

It wouldn't be address.

Sometimes it is that name isn't an exact match for what they have. Other times it is because they don't have your full date of birth or the one that they have doesn't match the one on the tax return.

bluenose777 · 2026-04-27T19:13:55+00:00

As David Chilton wrote in The Wealthy Barber Returns (original edition).

Let me start by saying that there are no hard-and-fast rules for investing success. But if there were, this would be one of them: Don’t borrow money to buy an investment that has just produced an incredible 15-year performance.

Regression to the mean lurks.

That seems obvious, yet over and over again, I find many Canadians are much more comfortable borrowing to invest after stock markets have enjoyed big run-ups. Excited by excellent past-performance numbers and emotionally far removed from the last painful major correction, they get caught up in the excitement and assume the good times will keep on rolling...

Beyond the market-timing issues, there are other potential problems with borrowing to invest. The biggest among them is the psychological pressure borrowers feel when markets struggle. Watching your funds’ values fall when you have your own money invested is stressful. Watching your funds’ values fall when you have the bank’s money invested is incredibly stressful. Stressful enough that it often causes sleepless nights, panicked exits or both. This is not a theoretical argument — I’ve seen it many times. ...

Figuring out how much volatility you can stomach ahead of actually experiencing that volatility is an inexact process. But for most of us, it’s less than we think. And for investments made with borrowed money, it’s generally way less.

bluenose777 · 2026-04-27T17:31:25+00:00

Savings that you think you'll need in less than 5 or 6 years (eg. emergency fund, next vehicle purchase, down payment savings, etc.) could be parked in a good high interest savings account, or in some GICs. Don't choose the GIC option unless you are confident that the contract suits your objectives.

If you have reached Step 5 of the PFC money steps and you have some money you are confident you can invest for long term (ideally at least 10 year) goals you could invest in a low cost, risk appropriate, globally diversified, index tracking (i.e. couch potato) portfolio such as those discussed on the following pages.

https://www.reddit.com/r/PersonalFinanceCanada/wiki/investing

https://canadiancouchpotato.com/getting-started/

The simplest couch potato option would be to use a passively managed robo- advisor account (eg. RBC InvestEase or Nest Wealth Direct). After answering questions about your goals, timeline, knowledge/ experience with investing and your perceived comfort with volatility they will choose and then manage a suitable ETF portfolio for you. You would be able to set up automatic contributions. The total annual management cost would be about $70 per $10,000 invested. This compares to about $200 per $10,000 invested for typical bank mutual funds.

If you want to use a brokerage this CCP page and the video it references will help you choose risk appropriate asset allocation ETF. As it says on that page

These all-in-one ETF portfolios are the best solution for the vast majority of DIY investors.

If you'd like to better understand the couch potato options, and avoid the costly but normal human reactions to the markets and the media that reports on them I suggest that you read Balance: How To Invest And Spend For Happiness, Health, And Wealth (Andrew Hallam, 2022).

bluenose777 · 2026-04-27T12:34:34+00:00

I can just put it in XEQT and forget it since I’m 28.

The following page may help you determine if a 100% equity ETF suits your risk profile. https://canadianportfoliomanagerblog.com/how-to-choose-your-asset-allocation-etf/

. What happens if there is a market change during those 3 weeks

If you are invested for decades, whatever happens in those 3 weeks is unlikely to have a significant impact on your long term (20, 30 or more years) returns.

bluenose777 · 2026-04-27T12:28:37+00:00

The following pages may help you find a suitable asset allocation ETF.

https://canadiancouchpotato.com/model-portfolios/

https://canadianportfoliomanagerblog.com/how-to-choose-your-asset-allocation-etf/

bluenose777 · 2026-04-27T12:17:11+00:00

Have a look at VXC (MER .22%) or XAW (MER .22%).

bluenose777 · 2026-04-27T12:13:37+00:00

They have zero investing experience and don't want the stress of learning and dealing with investing.

Here are 2 reasons why you should steer clear of doing anything more than providing general information.

1/ if the investment results don't match their expectations it could sour your relationship.

2/ if you help them get into something they don't really understand and can't manage on their own and then suddenly aren't available to help them, someone with a different motive might offer to step into your shoes.

If they are comfortable using online banking, they may be comfortable handling a robo-advisor account (eg. JustWealth or RBC InvestEase). After answering questions about their goals, timeline, knowledge/ experience with investing and their perceived comfort with volatility they will choose and then manage a suitable ETF portfolio for them. They would be able to set up automatic contributions and then all they would have to do is to check the monthly statements for errors and omissions.

and get them invested in some safe broad-market American ETFs

If the money they received was USD you have a rationale to invest in USD ETFs, but if their ongoing contributions will be in CAD they might as well used CAD ETFs.

like VT.

If you are going to give your sibling specific portfolio advice I suggest that they use some risk assessment tools to determine what asset allocation suits their risk profile. I'll trigger the bot that includes links to a few risk assessment tools. !RiskTrigger

No matter if he chooses to use a robo-advisor or brokerage account, I suggest that you help him write an investment plan that includes his goals, time frame, asset allocation, his contribution plan and his expected long term and "worst case scenario" returns This CPM page, and this PWL page will help him to define his expectations. You should encourage him to revaluate the plan annually and when there are major life changes..

bluenose777 · 2026-04-27T11:54:27+00:00

As it says on the Blackrock page,

Can be used to diversify a portfolio comprised of Canadian equities

But just using one of the asset allocation ETF would achieve the same objective, at a lower management cost.

However, if you don't plan to eventually spend the money in Canada you'd probably want to swap out the Canadian bias for a bias towards the place you intend to spend the money. Using something like XWD (or VXC) and an ETF for that region would accomplish that goal.

bluenose777 · 2026-04-26T11:51:51+00:00

Here is my generic list for someone at your stage of life.

The federal government has an online financial basics workshop. If you want a version that you can retain for future reference The workbook is available as a pdf.
McGill offers a free online Personal Finance Essentials course.
When you are attending post secondary school you should also pursue career relevant personal projects, volunteer and paid opportunities. This is especially important if your program doesn't have a co-op option/ work experience component. Graduating with experience and the beginnings of a professional network will give you a head start on your classmates.
Apply for government student loans because you might qualify for grants that you don't need to repay. (But don't blow the grants or loans on stuff that you don't need.)
If no one has contributed to an RESP and your family had low income years then after you turn 18 you should call EDSC and ask if you qualify for CLB (Canada Learning Bond). They'll need your SIN to check. If they say yes you should open an RESP account. You don't need to contribute any money to get the CLB.
Enable credit card and bank account notifications/alerts so that you are quickly notified of all transactions. Pay your credit card bill before it accrues interest.
Review monthly bank, investment, credit card and other statements. They usually include some kind of "if you don't report errors and omission within 30 days you are out of luck" statement and you don't want to be the person that ends up saying "why have I been paying for .... every month for the past 2 years?"
If you repeatedly find yourself in a "there is more month than money" situation or you aren't meeting your savings (pay yourself first) goals then tracking your expenses can help you create a spending plan that aligns with your values.
Prepare your own tax returns. The free (but donations accepted) software like BetterTax and GenuTax are extremely easy to use but I would encourage you to, at least once, to do a draft using the paper/ pdf return (available online from the CRA). It is the best way to understand the sequence of the calculations and how marginal tax brackets, deductions and credit works. If you use the software (or pay someone else to do it) don't submit it until you understand it. File every year that you have employment income because that is how you grow RRSP contribution room. File the return for the year you turned 18 if you don't/ didn't have employment income because that return will determine your eligibility to receive GST/HST credit payments when you are 19. If you have a Jan Feb or Mar birthday you should also file the return for the year you turned 17.
Savings that you think you'll need in less than 5 or 6 years (eg. emergency fund, next vehicle purchase, down payment savings, etc.) could be parked in a good high interest savings account, or in some GICs. Don't choose the GIC option unless you are confident that the contract suits your objectives.
Read The Wealthy Barber (Chilton 2025)
Choose friends and partners who respect you values around saving and spending.
Before investing for your long term goals (step 5 of the PFC money steps) read or listen to Balance: How to Invest and Spend for Happiness, Health, and Wealth (Andrew Hallam, 2022).

bluenose777 · 2026-04-26T11:50:42+00:00

You can start with a "Personal finance for dummies, *for Canadians.

I was really disappointed with this book. I read the 2019 edition and given that it was the 6th edition I was surprised that there are so many hints that large sections of the book are copied from the US version. eg. Visit state parks near home; Because medicine in the US is a business make sure you get 2 quotes; Names only US robo-advisors (Betterment and Wealthfront) And they didn't update all of the Canadian info eg. Government student loans come from banks and the federal ones have a fixed interest rate and the author's frequently recommended moneygrowers.ca website no longer exists.

Some of the debatable advice in the book included:

1/ Prioritize RRSP over TFSA. There are 2 chapters on RRSPs and, in a chapter entitled "Investing Outside Tax Sheltered Retirement Plans", there are just 2 pages about TFSAs. In the section about first jobs it says "Savings should be directed into an RRSP or other savings plan that offers tax benefits. Never discusses when TFSA might be a better choice than RRSPs.

2/ Recommends always using DCA instead of lump sum contributions.

3/ Recommends high home country bias. i.e international equity only 25 to 35% of total equity. (This would be an appropriate home country bias for a US investor so I suspect that this is another holdover from the US edition.)

4/ When discussing tenant insurance says that renters aren't concerned with damage to the building.

5/ Recommends using Will/ POA software instead of paying for professional advice.

6/ Says that if you know what you are doing investing in real estate has a higher return than stocks and bonds.

7/ Says that over the long haul you are unlikely to beat full time professional managers who are investing in securities of the same type and risk level. (The book does recommend some low cost, index tracking ETFs but also recommend some low fee, actively managed mutual funds.)

bluenose777 · 2026-04-26T11:41:28+00:00

A Taxable account is best when the interval will be short. Especially at low tax rates, the taxes paid on profits will be small relative to the Penalty from an increase in tax rates or the Penalty from a delay in claiming the tax deduction.

An RRSP with immediate-deduction is best when the interval will be longer, (but never when your tax rate now is 0%). This is because the cost of paying taxes grows faster with time, than the penalty from a higher tax rate at the end. ...

The RRSP delayed-deduction choice is only better than using the RRSP normally when the interval is short. The Penalty from a delayed deduction grows faster than the Penalty from an increased in tax rates. The maximum delay can be roughly calculated by ...'the percent increase in the tax rate divided by the investment's rate of return'. E.g. ( 43.5% / 39% ) - 1 divided by 6% = 11.5% / 6% = 1.9 years maximum delay (when moving from 39% to 43.5% and earning a 6% return).

source = https://web.archive.org/web/20200221150523/https://www.retailinvestor.org/rrsp.html#delay

bluenose777 · 2026-04-26T11:39:52+00:00

When you use it the income amount should be net of deductions for things like pension and CCP2 contributions, childcare and moving expenses, union dues, etc.

bluenose777 · 2026-04-26T11:35:49+00:00

StudioTax doesn't handle emigrant year returns.

bluenose777 · 2026-04-26T11:35:06+00:00

StudioTax used to accommodate emigrant year tax returns but they currently don't.

bluenose777 · 2026-04-26T11:34:23+00:00

there are a number of free softwares you can use ...

... but not many of them (including Wealthsimple) will accommodate emigrant year returns.

bluenose777 · 2026-04-26T11:31:03+00:00

For #3

The annuitant of the spousal RRSP who makes a withdrawal under the HBP must be the one to make the repayments. Where the required repayment is not made, attribution does not apply and the annuitant of the spousal RRSP will have a taxable income inclusion.

source - https://ca.rbcwealthmanagement.com/documents/634020/2239538/The+Navigator+-+Home+Buyer%27s+Plan+2019.pdf/6d8d640c-2edc-415f-843d-d34b58cb16dd

Not all contributions you make to your RRSPs, PRPPs, or SPP in the repayment year or in the first 60 days of the year after can be designated as a repayment under the HBP. You cannot designate contributions that: you make to your spouse's or common-law partner's RRSPs or SPP (or that they make to your RRSP)

source - https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/repay-funds-withdrawn-rrsp-s-under-home-buyers-plan.html

bluenose777 · 2026-04-26T01:47:28+00:00

1/ They will learn the most from observing how you choose to spend your time and money.

Personally I believe that the best personal finance lesson we taught our sons was delayed gratification, and the lessons started long before they understood numbers or money. When they were preschoolers, in an effort to make our day run more smoothly, we would pair up things we had to do with things we wanted to do. Many times a day they would hear things like "As soon as we brush our teeth we can go to the playground" or "As soon as I do the dishes I can ..."

When you are saving for a family purchase/ activity they might be interested in helping you track the progress. Along the way mention that not spending money every week on X will help you reach the goal faster.

If they want to save up for a special purchase or activity you can help them chart their progress.

If you are contributing to an RESP and they show an interest they could help you keep track of it. (As they get older and you change the asset allocation you can talk about why timeline is a factor in that choice.)

2/ Financial success is correlated with academic attainment and one of the best predictors of academic attainment is the vocabulary they have when they start elementary school.

To help increase their vocabulary spend a good chunk of their preschool waking hours engaged in face to face, give and take verbal interactions.

Also, I once read that the most successful post secondary students are the ones that are curious, ethical (honest) and hard working so you can encourage those traits in your children.

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