Questions and Answers

What is a Graduate Tax Credit?

This is a new tax credit that is available to anyone living and working in Nova Scotia who graduated from an eligible post-secondary program on or after January 1, 2006.

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What does a Graduate Tax Credit do for me? How much is it worth?

The Graduate Tax Credit could reduce your Nova Scotia personal income taxes by $1,000 for 2006 and 2007 and by $2,000 for 2008 and beyond.

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Am I eligible for the Graduate Tax Credit?

To be eligible to receive the Graduate Tax Credit, you must:

• Graduate from an eligible program at an approved institution on or after January 1, 2006
• Be a resident of Nova Scotia on December 31 of the year.
• File a 2006 (or later) tax return
• Submit a copy of your diploma with your tax return, or if you are filing electronically, keep a copy in case the Canada Revenue Agency asks to see further documentation
  

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What is an "eligible program"?

To receive the Graduate Tax Credit, you must graduate from a program that is offered on a full-time basis (even if you took it part time) that is offered through an approved institution. Full time means 60 per cent of a full course load, or a minimum of 20 hours per week of study.

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How do I know if my school/university/college is an approved institution? What if I graduated from an institution outside Nova Scotia?

Getting the Graduate Tax Credit is not restricted to those who graduated from Nova Scotia institutions. Nova Scotia offers the credit to graduates from any institution recognized by designated authorities under the Canada Student Financial Assistance Act, which includes hundreds of universities, colleges, schools and institutes across Canada and internationally. If you want to check whether your institution is on the approved list, the latest version is posted on the Canada Student Loans Program website.

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My school/university/college isn’t on the list for the Graduate Tax Credit or the Canada Student Loans Program. Why not?

The list of approved institutions is determined by federally designated officials in each province or territory. Please contact your institution regarding its designation status.

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How do I get a Graduate Tax Credit?

Claim the Graduate Tax Credit on your 2006 (or later) tax return and provide a copy of your diploma, degree or certificate with your paper return. If you are filing electronically, make sure you keep this documentation for future confirmation.

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If I get the credit, will you send me a cheque?

Claim the Graduate Tax Credit on your 2006 (or later) tax return and provide a copy of your diploma, degree or certificate with your paper return. If you are filing electronically, make sure you keep this documentation for future confirmation.

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What if my taxes are less than the Graduate Tax Credit amount? Can I get a refund of the balance?

No, the Graduate Tax Credit is non-refundable. This means that if your taxes are less than $1,000 (or $2,000 after 2007), you can reduce them to zero, but you will not get a refund for the difference. You can, however, carry any excess amounts forward to the next two tax returns and reduce your taxes in the future, until you use the total value of the credit.

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I graduated in 2006, but I didn’t claim the credit on my tax return.

Can I still get the Graduate Tax Credit? Yes. If you already filed your 2006 tax return without claiming your Graduate Tax Credit, you can request an adjustment from the Canada Revenue Agency. Go to the Canada Revenue Agency’s website http://www.cra-arc.gc.ca/ and search for "change your tax return" or call 1-800-959-8281.  Note that graduate tax credit certificates are no longer required, just copies of your diploma, degree or certificate.

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I graduated from two or more eligible programs, can I get more than one credit?

No, the Graduate Tax Credit is a once-in-a-lifetime credit--even if you complete more than one post-secondary degree or certification.

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I didn’t finish my program or graduate, can I still get the credit?

No, you must graduate from the program to be eligible for the tax credit.

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I graduated in 2005, can I get the credit?

No, the credit is only available to those who graduated on or after January 1, 2006.

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I went to school/college/university part-time, can I get the credit?

Yes, as long as you graduated from an eligible institution and a program that is offered on a full-time basis (even if you took it part time). Full time means 60 per cent of a full course load, or a minimum of 20 hours per week of study.

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