Tax tips for students

The Canada Revenue Agency (CRA) has issued a reminder that students who don’t file a tax return may be missing out on benefits and tax credits.

Important facts:

• Those 19 years of age when filing can apply for the goods and services tax/harmonized sales tax credit. That could mean a payment every three months—which is pretty handy for day to day expenses.
• It’s quick, easy, and likely free to file online as a student with a modest income.
• Filing the income tax and benefit return on time ensures there are no interruptions to benefit and credit payments.
• Any taxes paid on that job at the sandwich shop or movie theatre may come back as a refund – but only when they file.
• Students may be entitled to deduct from any income they earned the cost of:
  • tuition
  • books
  • moving expenses
  • student loan interest
  • transit passes, and more

Plus, reporting any income, no matter how modest, opens up RRSP contribution room.

For information about credits and benefits for students, visit www.cra.gc.ca/students.

Also read:

Back to school financial tips for students

Teens need money smarts

Canadian youth unrealistic about finances

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.