Where you a student in the past year? If so there are several tax credits available that you can take advantage of to lower your tax bill and maximize your tax refund. Here are the main tax credits you should be claiming as a student.
Each year your educational institution will send you a tax form (certificate) that summarizes what you paid in tuition fees. Those tuition fees can be claimed as a tax credit.
There are tax credits for just going to school on a full time or part time basis. On the tax form that your educational institution will send each year there is a section that outlines the number of months you were enrolled full-time (Box C) or part-time (Box B).
- For each month that you were enrolled full time you can claim $400 in tax credits.
- For each month that you were enrolled part time can claim $120 in tax credits.
For example… if you were enrolled full-time for 8 months of the year then you are eligible to claim for 8 months * $400 = $3,200 as your educational amount.
As a student you can also claim a textbook tax credit known as the textbook amount. The textbook amount is also a function of how many months you went to school on a full time or part time basis, which you’ll find on the same tax form that is sent by your educational institution.
- For each month that you were enrolled full time you can claim $65 in tax credits.
- For each month that you were enrolled part time can claim $20 in tax credits.
For example… if you were enrolled full-time for 8 months of the year then you are eligible to claim for 8 months * $65 = $5,20 as your textbook amount.
Tip: To claim tuition, textbook and educational amount you need to fill out and complete a Schedule 11 form to attach with your tax return.
Note: You can only claim the textbook tax credit if you claimed the Education tax credit.
Note: Effective January 1, 2017, the federal education and textbook tax credits will be eliminated
Interest Paid on Student Loans
Do you have student debt as a result of pursuing your education? The good news is you can claim the interest paid portion on your tax return. This applies to interest paid on your student loan last year or in the preceding five years for post-secondary education if you received it under…
- the Canada Student Loans Act;
- the Canada Student Financial Assistance Act;
- the Apprentice Loans Act; or
- similar provincial or territorial government laws.
Tip: Only you can claim an amount for the interest you, or a person related to you, paid on that loan in 2016 or the preceding five years. You can claim an amount only for interest you have not already claimed. If you have no tax payable for the year the interest is paid, it is to your advantage not to claim it on your return. You can carry the interest forward and apply it on your return for any of the next five years.
If you moved to pursue a post-secondary educational program at a university, college or other educational institution you are able to claim some of your moving expenses in your tax return.
There are are a few key criteria to quality however…
- You must move at least 40 kilometers
- You must be enrolled full time
Here is a list of moving expenses you can deduct.
- For more information on student tax credits visit this CRA page.
- View other tax deductions and credits