Here's Everything Students In Canada Should Know To Save Money On Their Taxes In 2023
Tax season is right around the corner once again, and if you're a student in Canada, you might be looking for ways to maximize money on your tax return.
To help, Narcity spoke with UFile tax expert Gerry Vittoratos to get details on how students across the country can get the most money back.
From knowing what to claim to where the best resources are, here's everything Canadian students should know come tax deadline time.
What are good resources for students at tax time?
The first thing that Vittoratos recommends students checking out is the P105.
What is it? Well, it's a guide for students to understand the ins and outs of your tax return. It tells you what you can claim in terms of scholarships, tuition and more.
Along with that, there are also resources for Canadian with low or modest incomes where volunteers will do your taxes for you, for free.
All you need to do is find a free tax clinic near you and get set up with them.
What can students claim on their taxes in Canada?
There are a bunch of expenses associated with your post-secondary education that you can claim on your taxes.
"Students can claim the tuition fees they paid to the post-secondary school," explained Vittoratos.
"They can also claim moving expenses they incurred to move at least 40 km closer to their school," said the tax expert.
"The moving expenses include transportation, storage, travel expenses (such as vehicle expenses, meals, and accommodation)."
However, there is a catch.
You can only claim these expenses if you've made any sort of income in the new location.
This includes taxable scholarship amounts or even employment income from a new job at the school's location.
How can students get more money or credit on their tax return?
On top of claiming moving expenses, you can claim your tuition fees with the tuition tax credit. Both of which will reduce what your tax payable is.
"Another avenue for students is to seek out and apply for scholarship income if it’s made available to them by their school," explained Vittoratos.
"Scholarship income is tax exempt if the student is/was studying full-time in the current, prior or following year," he said.
"You can’t get a better deal than tax-free money!"
When is the deadline for filing your 2022 taxes in Canada?
The tax deadline for your 2022 filing is May 1, 2023. And this is also the deadline for any payments you need to send in.
Typically it's April 30, but because that date falls on Sunday, you have an extra day.
But, that doesn't mean it needs to be in by that date in all situations. For example, in certain cases, your tax return can be post marked for May 1 and still be considered on time.
However, if you or your spouse are self-employed, you have until June 15, 2023 to file everything that needs to be filed.
Student or not, if you're trying to get yourself set up for the tax season, make sure to read up on tips for filing your tax return so you're prepared ahead of that May 1 deadline.
This article's cover image was used for illustrative purposes only.
