Reduce Taxes You Owe As A Student
Posted On: 27/02/24 - 0

Did you know that some of your education expenses can help reduce taxes you owe as a student? In this article you will learn what you can deduct from your student income to keep more money in your pocket.

Moving Expenses Deduction To Reduce Taxes

Did you move to attend a full time post secondary program? You will be eligible for this deduction if you are at least 40 kms closer to your school location. However, you can only deduct these expenses from income received in that tax year. Income could be scholarships, research grants, bursaries, etc.

Interest On Your Post Secondary Student Loan

You could be eligible to claim the interest on your student loan for 2023, and up to any of the next 5 years. The criteria is that you received the loan through the Canada Student Loans Act. Another option is that you received the loan through the Canada Student Financial Assistance Act. Finally the third option is that you received the loan through the Apprentice Loans Act.

Cost Of Tuition To Reduce Tax Bill

Fees paid for courses that were taken at a post secondary educational institution in Canada are eligible for a tuition tax credit. To be eligible, the student must be 16 years old or older before the end of the tax year. The student must be enrolled in the classes to obtain skills for, or to improve their skills in an occupation. Ask for a tax receipt or form from the school to indicate what the eligible tuition fess are for the said calendar year.

What Records Do You Keep When Filing A Tax Return?

If you are filing electronically, keep all of your recipts and other documents. This is a good idea in the event that the CRA would like tio view supporting data. If you are filing a paper return, the information is listed as to what to include when filing. For example, the CRA may request certificates, receipts or forms. Keep all of this information to gether with the return for a minimum of 6 years.

For more ways to reduce taxes you owe, or further clarification on your student expenses that are deductible, call our office.

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