As a student in Canada, you are entitled to certain tax benefits and credits. By understanding the tax system and claiming the right deductions, you can save money on your taxes. This post will provide tips on how to maximize your tax benefits as a student. Read on for more information!
You may be able to claim a portion of your child care expenses, if you have an eligible dependant. This can include expenses paid for the care of children under the age of seven while you are at school or working.
You could be eligible to write off your relocation costs, if you have to relocate more than 40 kilometres closer to your place of employment or education in order to attend. This covers the price of moving and storing personal belongings.
Tuition fees paid to post-secondary institutions are eligible for tax credits. The tuition fee credit can be claimed by either the student or by their parent/guardian, depending on who paid the tuition fees.
Students in Canada may be able to claim a portion of their textbook and other related supplies used during their studies. Eligible expenses include textbooks, educational software, stationery, and even certain computer hardware.
Travel expenses related to school or work are eligible for tax credits. This includes public transit passes, gas, and parking.
Student loans can be deducted from your taxable income when you file your taxes. This means that if the total amount of your loan is more than what you were required to pay during the tax year, the difference will be available as a deduction.
The Canada Training Credit provides a refundable tax credit to help offset the expenses associated with learning activities. Eligible activities include courses and seminars related to your current job or profession, as well as certain educational programs at eligible institutions.
Other tax credits for individuals may be available depending on your specific situation. These include the disability amount credit, the home buyers’ plan, and the pension income splitting credit. It is important to research all of these credits so that you can take advantage of any benefits you are eligible for. Contact us for more information about what tax credits and deductions you are eligible for or learn more on the Government of Canada website.
These are just some of the tax benefits available to students in Canada. For more information on how to maximize your student tax credits and deductions, talk to an accountant or financial advisor today at D KAJ Tax & Financial Corp. They can help ensure that you take advantage of all available benefits!