Tax season is here. It’s time to get your documents together and get your taxes over with. As much as you don’t want to do this, you have to and it’s important that you don’t miss the deadline.
As a college student it can feel a bit intimidating to deal with taxes. Luckily, our tax situation isn’t too complex when we’re still in school. We don’t have to worry about joint accounts with a life partner or anything along those lines. However, we still need to remember to take care of our taxes and make important deductions.
I found this article over at the Globe and Mail. I also received a helpful email from H&R Block about dealing with taxes. This is why today we’re going to look at important tax deductions that you can’t forget.
Your education costs.
Tuition naturally comes first.
You can claim tuition for any course that costs you over $100 at a recognized school. All students will receive a T2202A for the amount of tuition paid in the previous calendar year. You absolutely need a T2202A for your taxes or you can’t claim your tuition at all. The form allows you to claim tuition. This can be a huge savings for most students. From personal experience, I was always saved by my tuition.
You also can claim your textbooks. A full-time student can claim $65 for every month they qualify. What about part-time students? Part-time students can claim $20 per qualifying month (in Canada). We all know how expensive textbooks can be. That just sent a chill down my spine!
Any taxes you paid at your job.
Did you work during the school year or the summer months?
You have to claim your income. The good news is that if you earned less than a certain amount and paid taxes, you might get some money back. This of course depends on how many you earned vs how much you already paid in taxes.
What about a summer job out of town? If you move more than 40 kilometers to take a summer job, you might be in luck.
You can claim moving expenses against your income at this new gig. Possible expenses include: travel, transportation, storage and the cost of meals. This is all possibly of course.
Oh and tips are to claimed. They’re not tax-free and are considered as being part of your income.
How did you get to school?
If you took the bus and paid for a monthly bus pass, you can claim this. It’s important that keep your passes to claim the Transit Tax Credit. A little tax credit is always good.
Other tax deductions to look into.
Did you get any free money for school? Some students have expressed concerns over free money that they picked up for their education. Scholarships and bursaries are tax free if the related program qualifies for the education amount. So that’s some good news for you if free money came your way.
Are you paying for student loans? Interest on government and provincial student loans is deductible. Don’t forget to claim this!
Are you ready to deal with your taxes? Most of this advice is common sense. I hope that this article serves as a reminder for what you already know that you need to do.
Note : You should always consult a tax professional. These are tax tips for Canadian students. I have no idea where you’re reading this from or where you live.