Student Educational Tax Tips
Students are entitled to four (4) non-refundable tax credits which can reduce your federal and provincial tax. If these credits are more than your taxes owing, you will not get a refund, but some of these can be transferred to a parent or spouse or carried forward to future years.
1. Education amount credit- you will need your T2202 form from the post-secondary school receipt for entitlement for $400/month full-time and $120/month for part-time enrollment.
2. Textbook amount credit-you can claim $65/month full-time and $20/month part-time if you are entitled to claim the education amount credit.
3.Tuition amount credit-courses taken at post-secondary level or at an education institution certified by Human Resources and Skills Development Canada for which you paid over $100 in tuition fees for the year are claimable under this credit.
4. Interest on student loans-you may be eligible to claim your interest paid in the current year of the preceding five years on your student loans you received under the Canada Student Loans Act, the Canada Student Financial Assistance Act or similar provincial or territorial government laws.
If you cannot use your education, tuition and textbook credits on your own return, you can transfer up to $5,000 for the current year only to a parent/grandparent or spouse/common law spouse. Otherwise you can carry your education credits forward.
You must claim your carry forward education amounts is the first year you owe taxes.
You also may be entitled to claim a tax deduction for moving expenses and the cost of your transit passes. You will need to obtain a copy of your monthly transit pass receipts as credit card receipts are not sufficient proof. Remember to keep your tax return and receipts for six (6) years after the year of tax filing. For more information on income tax preparation, click here.
The above information is of a general nature only and should not be relied upon for specific situations. Click here for additional tax accounting services information. Call Marlies Y Hendricks CPA at 416-766-3941 to discuss your best options and set up an appointment.