2019-0797241E5 Qualifying students

Principal Issues: Whether a designated educational institution should issue T2202’s to students for months they are attending co-op work terms or practical training in teaching and clinical services programs?

Position: Question of fact.

Reasons: CRA's longstanding policy has been that students in co-op placements and internships would likely only be regarded as being enrolled as a full-time students during those months in which the designated educational institution is attended. All factors would need to be reviewed for any particular program to determine if the requirements of the definition of qualifying student and related definitions are met, such as whether the amount of hours required for instruction or work is met as described in the Folio.

Author: Wirag, Eric
Section: 118.6; section 203 of the Regulation

XXXXXXXXXX                                                           2019-079724
                                                                                   E. Wirag, CPA, CMA

February 28, 2022

Dear XXXXXXXXXX:

Re: T2202, Tuition and Education Certificate

This is in reply to your email dated February 19, 2019 requesting our written comments regarding whether you should be reporting months on the T2202, Tuition and Education Certificate (T2202), for certain students. More specifically you would like to know whether months spent in practical training by student teachers, co-op students and clinical services students would be reported on a T2202. We apologize for the delay in our response.

You state that some of the identified programs provide paid practical training to the students, while others do not. You also state that the practical training can occur at various organizations such as elementary schools, high schools, businesses, hospitals, medical offices, etc. You state that students are graded on their experience during the practical training.

You have also asked us to comment on whether our response will be affected by any of the following: (i) whether the student is full-time or part-time, (ii) whether the student is paid during their work placement, (iii) whether the student is graded or not on their experience and (iv) whether the work placement is within the university or outside of the university.

Our comments

This technical interpretation provides general comments about the provisions of the Income Tax Act (the Act) and related legislation (where referenced). It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R11, Advance Income Tax Rulings and Technical Interpretations.

Section 203 of the Income Tax Regulations requires all designated educational institutions (DEI) in Canada to file the information return, Form T2202, Tuition and Enrolment Certificate, for each individual who is enrolled at that DEI and who is a qualifying student for a month in a tax year. This filing requirement applies to the 2019 and later tax years.

A qualifying student, as defined in subsection 118.6(1) of the Act, for a month in a tax year is an individual who is in the month:

(a) enrolled in a qualifying educational program as a full-time student at a DEI, or

(b) enrolled at a DEI in a specified educational program that provides that each student in the program spend not less than 12 hours in the month on courses in the program.

A qualifying educational program, as defined in subsection 118.6(1), is a program of not less than three consecutive weeks duration that provides each student in the program spend not less than ten hours per week on instruction or work in the program. The definition states that a qualifying educational program does not include a program if the student receives any allowance, benefit, grant or reimbursement for expenses in respect of the program (other than a few noted exceptions such as a scholarship or bursary) from a person with whom the student was dealing with at arm’s length.

As explained in ¶1.17 of Income Tax Folio S1-F2-C1, Qualifying Student and the Education and Textbook Tax Credits (the Folio), when referring to the definition of a qualifying educational program, instruction or work “includes all forms of direct instruction, such as lectures, practical training, or laboratory work. When the student’s program falls short of providing 10 hours weekly of lectures, practical training, and/or laboratory work, that student’s time may be augmented by a reasonable estimate of time outside the classroom or laboratory, normally required and expected of a student during a particular program, for work assignments or other items listed below:

* after enrolment, taking a test at the beginning of a program to establish the program level at which the student will participate;
* taking an achievement test at the end of a program;
* essays;
* term papers;
* other written work; and
* oral presentations.”

A specified educational program, as defined in subsection 118.6(1), is one that would be a qualifying educational program if the requirement of a student spending not less than ten hours per week on courses or work in the program was not applied.

When referring to the requirement of 12 hours in the month on courses in the program as per the definition of qualifying student described in (b) above, lecture time and additional time spent on practical training and laboratory work is included. When a program falls short of providing the student with 12 hours per month of direct course instruction, time may be augmented by a reasonable estimate of time outside the classroom or laboratory for work assignments or other items as provided in ¶1.17 of the Folio.

The Folio also discusses the CRA’s views on co-operative courses in ¶1.27 as follows:

“Some designated educational institutions provide co-operative courses in which the student attends for an academic period and then works for one or more co-op terms in a business or industry relating to the student’s academic studies. The student is regarded as being enrolled as a full-time student only during those months in which the designated educational institution is attended.”

It is a question of fact whether an individual is a qualifying student in a month where they are participating in practical training offered in a program such as those you have identified. All factors must be considered, including the CRA’s position stated above regarding co-op placements. In our opinion, this comment is still valid since full-time enrollment in an accredited educational institution is a separate criterion in addition to the “qualifying educational program” requirement.

The question of whether a practical training course for which trainees are paid can be a qualifying educational program or specified educational program is a question of fact. We are of the opinion that the fact that students are paid for the work done during the work placement will not, by itself, prevent them from being a qualifying student as long as the remuneration is not a consideration, allowance, benefit, subsidy or reimbursement by the employer for the costs of the program in question.

We trust these comments will be of assistance.

Yours truly,



Lita Krantz, CPA, CA
Manager, Tax Credits and Ministerial Issues
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

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