ballz
Army.ca Veteran
- Reaction score
- 444
- Points
- 910
Brihard said:Figure out how much school will actually cost, and ask for only that amount-
That's literally turning down free money. In the scenario above, not taking the additional $16,000 is basically be turning down $12,000 of actual after-tax money.
Brihard said:If your ETB amount equals roughly your education costs, no tax hit.
Not assured. The tuition tax credit is only 15% of tuition paid. The education and textbook tax credits were eliminated by the Liberals. So even if you only take the $4000 for tuition, if your marginal rate is higher than 15% (and it almost certainly is) then there's going to be a tax consequence. If you plan it poorly and made $80,000-100,000 that year, released, and then received the money for tuition prior to 31 December, your marginal tax rate on that tuition money is going to be quite a bit higher than 15% (like let's say you are in NB... it's probably in the neighbourhood of 37%....... so on that $4000, the net tax effect is 4000*(.37-.15) = $880.