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Nine Tax Saving Opportunities for Students

Mar 31, 2017 12:22:24 PM Sheri MacMillan Tax Planning

Tax Saving Opportunities for StudentsThe Canada Revenue Agency wants to help support students, which is why they offer a number of tax credits, deductions, and benefits, which will help reduce their tax owing and put more money back into their pocket.

Even if you made little or no income this tax year, you should file your return to ensure you take advantage of these opportunities.

Take a look at the top tax credits for students.

Eligible Tuition Fees

If you attended a post-secondary institution, you may be eligible to claim your tuition fees. Your school should supply you with a tax certificate if you are eligible. You can also claim eligible examination fees.

Education Amount

If you attended a designated post-secondary educational institute on a full-time basis, you are able to claim up to $400 for each month in which you were enrolled in a qualified program. You may also claim this amount if you were a part-time student who has a certified mental or physical impairment and/or is eligible for the disability tax credit.

If you are a part-time student who does not qualify for the disability tax credit, and does not suffer from an mental or physical impairment, you can claim $120 per month enrolled.

Textbook Amount

If you qualify for the full-time education amount, you are also able to claim $65 per month for textbook costs. Similarly, if you qualify for the part-time education amount, you can claim $20 per month in which you were enrolled in a qualifying program at a designated educational institute.

Interest Paid On Student Loans

If you are paying interest on a student loan received under the Canada Student Loans Act, the Canada Student Financial Assistance Act, the Canada Apprentice Loans Act, or a similar provincial or territorial law, you may be eligible to claim an amount on the interest paid to reduce your taxes.

Public Transit Amount

Whether or not you are attending post-secondary education, you may be able to claim the costs of public transit passes or electronic payment cards. The amounts must be for eligible passes and cards and must be used for public transit within Canada.

Eligible Moving Expenses

If you moved to attend school, or moved for work, you may be eligible to claim your moving expenses. The new residence must be at least 40 km closer to your school or place of work.

If you moved for school, you must be attending full-time and your expenses can only be deducted from scholarships, fellowships, bursaries, certain prizes, research grants, and artists’ project grants which must be included in your income.

If you moved for work, including self-employment, you can only deduct moving expenses from income earned at the new work location. If you do not earn enough income from the new location, you can carry forward unused moving expenses to another year and deduct them from income earned in the new location.

Goods and Service Tax/Harmonized Sales Tax (GST/HST) Credit

The GST/HST Tax Credit is a quarterly payment which helps individuals and families with low income offset the GST/HST they pay.

Your GST/HST Tax Credit eligibility is determined when you file your tax return.

You may be eligible to receive the tax credit if you turn 18 before April 1, 2018.

If you are married or in a common-law relationship, only one of you can receive the credit and it will be given to the person whose return is assessed first.

Canada Child Benefit

If you have children under 18, the Canada Child Benefit can help you with the cost of raising them. This benefit replaces the Canada child tax benefit, national child benefit supplement,

and the universal child care benefit, and may include the child disability benefit and any related provincial and territorial programs.

Child Care Expenses

You may be able to deduct your child care expenses if you pay to have someone care for your child while you attend school. This can help further offset the cost of raising a child while you obtain your education.

As you can see, there are many credits and benefits which can help offset your expenses while you attend school. In addition to these opportunities, you may also be able to transfer unused tuition, education, and textbook amounts to a parent, grandparent or spouse.

For more information for students, head over to the CRA website.



At MacMillan Estate Planning, our team of professional trust and estate practitioners, chartered accountants, financial planners, and legal professionals look forward to assisting you with the design of your estate plan and will ensure you build, protect, and enjoy your wealth. The information provided is general and may not be suited to your objectives or sufficient to ensure the protection of you and your family. You should not act on this information without providing MacMillan Estate Planning with the opportunity to ensure that it is suitable for your unique situation.

Sheri MacMillan

Written by Sheri MacMillan

Sheri MacMillan is the Founder & President of MacMillan Estate Planning Corp, Canada’s elite estate planning firm and is a highly respected industry leader

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