Wednesday, November 10th, 2010

Students Vs. The Taxman

Canadian Students Taxes

Most students can look forward to tax time each year.

Many post-secondary students actually look forward to tax time each year. Typically their income is low and expenses are high, so they can expect a much needed tax refund.

But are you getting back everything you’re entitled to? H&R Block offers a bit of free advice to make sure you’re aware of every possible tax break or credit.

Some of the key points include:

Tax Credits
If you’re over 19, take advantage of the annual GST/HST credit, paid in quarterly installments. Other provinces also pay tax credits to lower income taxpayers. Also, you can get money back from deductions taken from your summer/ part time job’s pay cheque and some of the CPP you paid.

Moving expenses
If you had to relocate, either for work or school, save your receipts. If your new home is more than 40 km from your old home, you can get money back from purchases like plane tickets, gas, and any meals and lodging you needed while moving. You can also deduct up to 15 days worth of temporary accommodations.

Tuition Fees
Unless you’re a freshman, you probably already know that your tuition is deductable, and have stood in line for your T2202A form. Keep in mind while tuition is deductable, you’re parking and student association fees are not.

Education Credit
While you’re claiming your tuition, you’re also eligible for an education amount of $400 for every month you’re enrolled in a fulltime college or university program. Part-time students may be eligible for up to $120 per month.

Your expensive textbooks can potentially help you earn $65 for each month you qualify for the full-time education amount or $20 for each month, if you’re a part-time student.

You can claim your transit pass, as long as each pass gave you unlimited travel for 5 consecutive days and you bought enough to cover 20 days in any 28-day period. Electronic passes also qualify if you used them to make at least 32 one-way trips in 31 days.

Ryan Leclaire
Author: Ryan Leclaire
Ryan has been writing for 7 years and has been featured in Chatelaine, Canadian Living and Cottage life.
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