Students & New Grads in Canada: Tuition, Student Loan Interest, Moving Expenses, and Transfers (2025 Tax Return)

A practical 2025 guide for Canadian students and new grads: how to claim tuition credits (Schedule 11/line 32300), transfer up to $5,000, claim student loan interest (line 31900), and deduct moving expenses (line 21900), including Quebec add-ons.

If you’re a student or a recent graduate, your tax return is more than just filing—it’s how you protect credits you’ll use later, and sometimes how you unlock immediate savings for your family through tuition transfers. The most valuable items to get right are:

1. Tuition amounts (Schedule 11 / line 32300)
2. Transfers of tuition to a parent/grandparent or spouse (line 32400)
3. Student loan interest (line 31900)
4. Moving expenses (line 21900)
5. Quebec-specific equivalents (Schedule T, student loan interest credit, moving expenses rules)

Below is a clear, CRA-aligned guide you can use as a checklist.

1) Tuition amounts: what to claim and where (Schedule 11 / line 32300)

If you have eligible tuition fees, CRA requires you to complete Schedule 11 to report:

• your 2025 eligible tuition amount, and
• Any unused tuition amounts carried forward from prior years are shown on your Notice of Assessment.

You’ll typically receive a tuition certificate, such as T2202 (or a TL11 form for some foreign institutions). CRA lists what qualifies as eligible tuition fees and how to report Canadian vs foreign tuition on Schedule 11.

Key planning point

Even if your income is low and you “don’t need” credits right now, filing Schedule 11 correctly helps ensure your unused tuition amount is tracked for future years.

2) Tuition transfer strategy: when to transfer to parents vs carry forward

This is where families often miss out.

The CRA rule (maximum transfer)

You may transfer up to $5,000 of the current year’s federal tuition amount minus the amount you used to reduce your own tax payable (as calculated on Schedule 11).

Who can receive the transfer?

CRA allows a transfer (current year only) to:

• your spouse/common-law partner, or
• your (or your spouse’s) parent or grandparent.

Important limitation

CRA is explicit: you cannot transfer tuition amounts you carried forward from a prior year—only the current-year amount is transferable (subject to the $5,000 rule).

Practical decision framework (simple and effective)

• Transfer is usually best when a parent/spouse has tax payable now and can benefit immediately.
• Carry forward is usually best when no one can use the transfer effectively, or you expect your income to rise soon and want to use the credit yourself later.

3) Student loan interest (Line 31900): claim now or carry forward (up to 5 years)

If you paid interest on a qualifying government student loan, you can claim the interest paid:

• in the current year, or
• in any of the previous five years (carry forward).

There’s no fixed maximum limit—it’s based on the interest you actually paid on qualifying loans.

Practical tip

If your income is very low in 2025, it can be smart to carry forward student loan interest and claim it later when it reduces tax payable more meaningfully.

4) Moving expenses (Line 21900): students and new grads can qualify—if the facts fit

Moving expenses are a deduction (not a credit) and can be significant in your first “real job” year.

The 40 km rule (CRA)

To qualify, CRA generally requires your new home to be at least 40 kilometres closer (by the shortest public route) to your new work or school location (depending on the reason for the move). CRA’s line-by-line guidance uses the 40 km test in determining eligibility.

Students: an important limitation

CRA’s moving-expenses guidance for students indicates eligibility depends on specific conditions, including that you’re a full-time student moving to attend a post-secondary program and (in certain cases) that you had eligible income to deduct against.

How to claim moving expenses

If eligible, CRA directs you to complete Form T1-M (Moving Expenses Deduction) and claim the result on line 21900.

New grad scenario: moving for work

If you relocated for a new job, the same framework applies—what matters is that the move meets the conditions (including distance) and that expenses are eligible and supportable.

5) Quebec add-on (Revenu Québec): tuition, student loan interest, and moving expenses

If you live in Quebec, you file both:

• Federal (CRA) return, and
• Quebec (Revenu Québec) return—often with similar concepts but different forms/lines.

Quebec tuition credit (Schedule T / line 398)

Revenu Québec confirms you can claim a tax credit for tuition or examination fees and that you should complete Schedule T (and can carry forward/transfer unused portions in permitted cases).

Quebec student loan interest credit

Revenu Québec also provides a non-refundable tax credit for interest paid on a student loan (eligibility depends on the loan type and conditions).

Quebec moving expenses (line 228)

Revenu Québec allows a moving-expense deduction for eligible moves, including moves to attend an educational institution as a full-time post-secondary student, and also uses the 40 km distance condition.

Bottom line for Quebec filers: Align your facts (dates, reason for move, receipts) so your federal and Quebec filings match cleanly.

6) “Do this now” checklist for students and new grads

Tuition & transfers

• Collect your T2202/TL11 tuition slips (and confirm amounts).
• Complete Schedule 11 every year you have tuition amounts.
• Decide: transfer up to $5,000 (current-year only) vs carry forward.

Student loan interest

• Gather your student loan interest statement.
• Claim now or carry forward up to 5 years.

Moving expenses

• Confirm that the 40 km rule is met and that you have an eligible income to deduct against.
• Keep receipts + proof of payment.
• Use Form T1-M and claim on line 21900 if eligible.

Quebec residents

• Complete Quebec Schedule T for tuition.
• Review Quebec moving expenses (line 228) and student loan interest credit.

Common mistakes we see

• Transferring more than allowed (or trying to transfer prior carry forwards)
• Forgetting to file Schedule 11, which can disrupt the tracking of unused amounts
• Claiming student loan interest on a non-qualifying loan type (often private lines of credit)
• Claiming moving expenses without meeting the 40 km condition

Source: CRA