If your client is a student or the parent of one, you’ll want to ensure they know about the potential tax benefits and credits available.
On Wednesday, the Canada Revenue Agency provided the following tips to help students save money at tax time:
- Tuition tax credit — This credit may reduce tax owing for those who paid tuition fees to a post‑secondary school. Taxpayers may also be able to claim amounts spent on courses to obtain or improve a work skill in an occupation.
- Interest paid on student loans — Part of the interest paid since 2014 on a student loan for post-secondary education may be able to be claimed.
- Eligible moving expenses — If a full-time student moved for school, they may be able to claim moving costs. They may also be able to claim the cost of moving for work, such as a summer job or to run a business. The move must have been at least 40 km closer to school or work.
- Childcare expenses — If the taxpayer paid for childcare so they could attend school, work for pay or conduct research, they may be able to deduct this expense.
- Goods and services tax/harmonized sales tax (GST/HST) credit — Those with low or modest incomes may be eligible to get a tax-free payment four times a year. To be eligible, the taxpayer must turn 19 before April 1, 2021, or have (or had) a spouse or common-law partner, or be (or have been) a parent and live (or have lived) with their child. Tax returns must be filed every year to keep getting these payments.
- Canada child benefit — Those who have a child may be able to get these tax-free monthly payments made to eligible families to help with the cost of raising children under 18. Tax returns must be filed every year to keep getting these payments.
- Canada workers benefit — The benefit is an enhanced, more accessible refundable tax credit available to eligible individuals and families who work and earn modest incomes.
- Provincial and territorial benefits — Taxpayers may qualify for additional provincial or territorial benefits depending on where they live.
- Carrying forward past amounts — Taxpayers can no longer claim federal education and textbook amounts but may still be able to carry forward those unused amounts from previous years to another year. An unused amount carried forward must be claimed when filing for the first year that income tax is owed.
- Climate action incentive — Residents of Alberta, Saskatchewan, Manitoba or Ontario may be eligible for this payment when they file 2019 taxes. They could also receive a larger payment if they live in a small or rural community. The incentive will first lower taxes owing, or create or increase a refund.