We’re a month into the semester, so most students are so busy with their coursework that they aren’t even thinking about tax season, which feels ages away. However, many students also know the pinch of not having enough money for their budget. When every dollar counts, it’s important to find out about tax-saving opportunities. So take a break from “studying” your Facebook feed and learn how you can save money this tax season.
Deductions. In the same way that business owners are able to write off certain expenses against their income, students also benefit from being able to claim certain costs. Tuition and textbooks are two of the largest expenses for students, so make sure you keep your receipts! When it time to file taxes, you’ll be able to claim these expenses and significantly reduce your net income. If you’ve begun to pay back student loans, you are also able to claim any portion of those payments that covered interest. Finally, if you moved to a new city to attend university, there are a number of moving expenses you may be eligible to claim. Any transportation or storage costs, such as hiring movers, paying for in transit storage, packing, and insurance are typically claimable. You may also be able to claim travel expenses to your new university. These include vehicle expenses, meals, and accommodations.
Always File Taxes. Many students think that since they have very little income, they shouldn’t bother filing taxes. But that’s just not the case! There are many provincial and federal benefits and credits available for low income Canadians, including students. If you aren’t filing your taxes, you won’t be able to take advantage of these opportunities.
Credits. Many provinces and territories help to subsidize low income Canadians who are studying. They understand that investing in young Canadians and helping them to get the education they need is an investment in the future economy. One of the most common benefits you may be eligible for include GST/HST tax credits. If you’re a parent as well on top of being a student, it’s also worthwhile to ensure you’re receiving the Canada Child Benefit.
As a nation, Canada has always valued students. The many tax deductions and credits available to students are a demonstration of Canada’s willingness to help young Canadians to succeed. Do you want to learn more ways you can avoid excessive taxation and save money this spring, contact the estate experts at MacMillan Estate Planning.