Students and their taxes

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Students and their taxes

Posted by Rob on March 11, 2013

More time to chill. Our online info makes taxes easy.

When I wrote that title, I thought to myself, “Really? I’m actually going to talk about taxes?” This may not seem like the most interesting topic to read about, but rest assured that if you are a student, you will want to read this post.

Right off the bat, the advice I’m about to provide is only a snippet of what you really should know about tax filing. For the most accurate, detailed and up-to-date information, I strongly encourage you to visit the Canada Revenue Agency’s page on students.

Now, let’s get to the meat of this post.

I’ve been faithfully filing my taxes since I was 17 years old, when I got my first job scooping ice cream in a small town in Eastern Ontario. My mom often organized it all for me, so I never had to worry much. But as I grew older I came to understand that filing taxes as a student is slightly different than when you’re a non-student. It goes beyond just submitting your receipts, T4s and other tax slips. Here are some common items that may be claimed by students (make sure you keep all your receipts!):

Most tuition fees and education and textbooks amounts;
Interest paid on student loans;
Public transit passes (including fees for an annual transit pass, paid along with your tuition);
Moving expenses if your new home is located at least 40 kilometres closer to your school or work.

There are additional credits available at the provincial level that I also encourage you to check out. There are multiple ways to file your taxes. Filing online is the fastest and easiest way to send your return. If you file online and sign up for direct deposit, you may receive your refund in as little as eight days. Certified NETFILE programs (some of which are free) will guide you through the process, ensuring you don’t miss out on credits and benefits for which you may be eligible. Additionally, you can contact tax professionals to ask them to file your taxes for you. Keep in mind though that they may charge a fee.

If you are receiving a tax refund, you may want to consider investing it in a Tax- Free Savings Account or starting your own Registered Retirement Savings Plan. It’s never too early to start saving money, even if you’re a student, regardless of whether you’re saving for a rainy day, a special purchase or long-term savings.

The key thing to remember is that for most of us the deadline is April 30 and you do not want to be late. You risk penalty and interest charges on any possible amounts owing or you may delay the time it takes to receive your refund! If you or your spouse or common-law partner is self-employed, you have until June 15 to file your income tax and benefit returns. However, any balance owing must still be paid by April 30.

New to tax returns entirely or just have several questions about the process? I found this great resource offered by the Financial Consumer Agency of Canada. It explains everything—in simple terms—from the ground up.

The bottom line is that the easiest way to file your tax return is to prepare in advance. Don’t let it catch you off guard or stress you out. Be informed!

Good luck and happy filing!

Canada Revenue Agency Resources

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