Students: It Pays to File Taxes!
Are you going back to school? Ensure you’ve added tax literacy to your class schedule! Understanding taxes helps you make intelligent financial decisions, such as how to save money for a vacation, a car, or your first home.
It’s Extra Money in Your Wallet
- If you’re over 19, you may qualify to receive a GST/HST credit payment four times yearly to assist with your expenditures, even if you don’t work.
- Receive the Canada Carbon Rebate, which is a tax-free payment that can assist qualifying individuals cover the cost of federal pollution pricing.
- Are you a parent of a child under 18 years old? Canada’s Child Benefit assists with the costs of having a family.
Increase Your Tax Literacy
- Learn about your taxes with an online learning tool from CRA that is self-paced and will help you understand what taxes are, how you can do them, and what they mean for you.
- Access free webinars with engaging, helpful information designed for students.
Mind Your Own Business
- If you work and attend school together, most of your earnings—such as salary, scholarships, and grants—are taxable. Take steps now to avoid difficulties at tax time.
- It is crucial to report all revenue, including tips, and ensure you understand what should be reported on your taxes.
- You may be considered self-employed if you work from an app or a website. When you work for yourself, you are subject to different tax restrictions.
- Keep all of your financial records for six years, including emails, contracts, and invoices for your money sources. This helps with your taxes!
Maximize Your Deductions and Claims
In the 2023 tax year, more than 2.4 million claims were filed for tuition, schooling, and textbook expenses. This applies to claims made by students and those transferred to other qualifying individuals. Did you claim what you were entitled to? If not:
- Are you 16 or older and enrolled in postsecondary education? You can use tuition credit to lower your debt or carry it forward. You can also transfer funds to your parent, grandparent, or spouse, which can lower their taxes.
- Did you move for school? You can claim your moving expenses if your new house is a minimum of 40 km closer to school.
- Have you paid interest on your student loans? You could claim that as well, or you could save the money and claim it later.
Use CRA digital tools to get easier access to your tax information
- My Account is a valuable tool that allows you to check the next benefit payment date, track the status of your tax return, and keep your personal information up to date.
- Register for CRA sign-in services, including My Account, using your cell phone and a government-issued picture.
- Sign up for direct deposit in My Account to receive your tax refund and benefit payments directly to your account.
Need assistance? Free tax clinics can help!
- Free tax clinics (in person or virtual) are available across Canada from March to April, with some operating year-round. Find the best clinic for you.
- Are you looking to volunteer and gain work experience? Free tax clinics are always seeking volunteers. You can file returns, but there are other opportunities as well. For additional information, please visit Volunteer at a Free Tax Clinic.
