Paying taxes is one of the costly aspects of adulthood, but for someone who’s off to university or college, there are ways to get back more money when you file for taxes. Keep any receipts for these items to offset your income tax costs or gain more money from your tax return.
There’s some incentive for students who decide to move to another city for university. If you’re enrolling as a full-time student, you’ll be able to get money back for various moving expenses: movers, hauling, any vehicle expenses, meals and accommodation a part of the move, temporary living expenses, cancelling a lease and the costs related to changing your address on legal documents, and more. Check out the CRA website for more details.
Keep in mind that these moving expenses are only deductible if you move at least 40 kilometres from your home.
Regular monthly commuting with buses or subways can be a pain, but if it’s any consolation, you can lower how much federal tax you pay. You can only claim this amount if you purchase a monthly pass that grants you unlimited travel or if you purchases passes that give you unlimited travel for 20 days of the month.
Tuition and Textbooks
Claiming post-secondary tuition and any textbooks can bump up your tax returns for years. The amount for your text books will automatically be calculated when you claim your tuition on your return.
The amount you pay will be applied to your income tax return as the education amount. If your education amount exceeds your taxable income, you can carry forward the credit you file your tax return next year. You can also choose to transfer the amount to a relative’s tax return to lower the amount they have to pay.
Interest Paid on your Student Loan
With the cost of tuition increasing all over the country, it can’t be helped that many students are forced to rely on student loans. Once you begin to pay off your loans, any interest accrued can be applied to your income taxes for five years. Not all student loan interest qualifies for a deduction, so be sure to double check your eligibility by reviewing the eligible amounts on the CRA website.
For more information on how being a student can impact your tax return, review the CRA guide for Students.