Although no direct tax relief is available for private school tuition, several indirect measures are available including deductions and credits.
Samantha Prasad, a tax specialist, says the general rule is that private school tuition for elementary and secondary school students is not tax deductible.
However, she says, a portion of private school fees that relate to child care services for students under age 16 may be deductible as a child care expense.
The deduction amount is based on that portion of the day that involves supervision and is not related to academic instruction.
"It may be possible to claim a charitable donation tax credit for all or a portion of the fees paid to a private school that exclusively teaches religion or where the private school provides both academic and religious education."
If the school is registered as a charity, the tax benefit of a charitable donation can be significant, depending on the province. Check with your prospective school to see whether fees are segregated and if tax receipts are issued for these purposes.
It may also be possible to claim the tuition fees as a medical expense tax credit, provided that a doctor certifies in writing the facilities, equipment or personnel of the private school are required due to the student's needs.
Often, grandparents or relatives wishing to contribute to a child's private school tuition will make an outright gift of cash. Under so-called "attribution rules," any income earned from that gift will be attributed back to the donor for tax purposes. But there are exceptions.
Large gifts of capital property to a minor may, for example, be invested in the student's name in a "corporate-class" type of investment (usually mutual funds), where any disposition of units is treated as a capital gain, and is thus taxed at the student's lower rate.
Certain kinds of trust arrangements may mitigate the effects of attribution rules, but these require legal help.
Article from Our Kids Media, a source to help families find private schools, camps and retirement living options.
