Student Educational Tax Tips
Students are entitled to two (2) non-refundable tax credits which can reduce your federal 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.Tuition amount credit-courses taken at post-secondary level or at an education institution certified by the Minister of Employment and Social Development Canada for which you paid over $100 in tuition fees for the year are claimable under this credit.
2. Interest on student loans-you may be eligible to claim your interest paid in the current year or 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 tuition 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 tuition credits forward.
You must claim your carry forward education amounts in the first year you owe taxes.
You also may be entitled to claim a tax deduction for moving expenses.
The above information is of a general nature only and should not be relied upon for specific situations. Call Marlies Y Hendricks, CPA at 416-766-3941 to discuss your best options and set up an appointment.