7 Ways Students In Canada Can Save Money At Tax Time, According To The CRA
If you've paid tuition this year, you might get money back. 💸
In a notice shared back in January, the agency confirmed that the filing deadline for most individuals is April 30, 2022, and urged students to get prepared and learn about their taxes.
This time of year can be especially stressful if you're new to the confusing world of accounting. Navigating your finances from the last year, finding out what you owe and calculating what you might be owed can be a labyrinth even at the best times.
So, here's a look at what you need to know about saving money at tax time through things like tuition tax credits, training credits and more.
Tuition tax credit
If you paid tuition to an eligible post-secondary school or certified educational institution, the CRA might knock some money off of the tax you owe them.
Eligible people can also opt to transfer the credit to a partner, a parent, a grandparent or other family members.
It's a nice little break for all you broke students out there.
Unused tuition credits
According to the CRA, you can carry forward your unused tuition credits (that you did not transfer) over to future years.
"You can no longer claim federal education and textbook amounts on your return," the agency explains. "But, you may still be able to carry forward any education, and textbook amounts from previous years."
And, to make this an even nicer bonus, you're able to push that unused amount over to the first year you owe income tax, which will save you money when the time comes to pay up.
Canada training credit
This is a refundable credit that eligible students can use for any schooling or training taken in the last year.
It applies to "courses you took in 2021 or for fees paid to certain bodies related to an occupational, trade, or professional examination taken in 2021."
This is a similar credit system to the tuition tax credit and even stacks with it, with some caveats and changes to certain credit limits.
But, the long and short of it is that it's either a tax credit or even a refund, depending on what you owe from your taxes.
Interest on student loans
If you're one of the folks who've taken out a student loan and have started paying it off, there's a way for you to save a bit on your taxes.
If you've paid interest on an eligible student loan in 2021 (or in the previous five years and have not claimed it yet), you can claim it on your taxes.
Going to a post-secondary institution full-time can incur some serious moving costs. So, if you relocated to attend school, you'll have the chance to claim those moving expenses.
There are some catches, though. For example, you'll only be able to get this if you've moved at least 40 kilometres closer to your post-secondary institution.
And, you can even claim moving costs if you move because of work or to run a business.
Canada workers benefit
This is a tax credit that is available for workers in Canada who earn a low or modest income. As a student, you can qualify for this in some cases.
To get this benefit you must earn a working income of less than $32,245. However, as a student, you are only eligible if you've been enrolled in school for 13 weeks or less out of the tax year, or if you have an eligible dependant.
Finally, you could be someone who qualifies for the GST/HST tax credit.
This credit is for those who make a low or modest income, turned 19 before April 1, 2022, have a spouse or common-law partner, or you are a parent who lives with a child.
If one or more of those apply to you, you could be eligible, and all you need to do is file your taxes every year to receive it.
Good luck, students!
This article's cover image was used for illustrative purposes only.
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