We all know that young adults have had their share of challenges in the past year. From the disruption of COVID-19 to the rapid increase in the cost of living, to the use of government assistance…all of which makes it difficult for them to do their taxes this tax season. That’s why Intuit offers young people 25 and under the opportunity to file their taxes for free, no matter how complex their tax situation.
This year, Intuit, the technology platform behind the popular TurboTax software, is committed to supporting students and young workers by removing the expense of filing their taxes. This initiative aims to help individuals and communities prosper.
Whether a young person earns a bit of money, or no money at all, it is in their best interest to file a tax return, as this will allow them to take advantage of tax benefits such as tuition credits, a GST credit and much more. Here are some of the benefits.
Doing Your Taxes: A Potentially Rewarding Exercise for the Student
When you’re a student, tuition is the largest single expense. This is good news because those who qualify can claim the non-refundable tuition tax credit. There are several other expenses that the well-advised student will be able to claim to reduce from his or her income, under certain conditions: moving expenses, tutoring (for those with learning disabilities), exam and admission fees, etc. These tax benefits allow students to reduce their tax bill on income earned in 2021 or can even be carried forward to a future tax return if their income in 2021 is low.
Good to Know
The tax slips provided by educational institutions are the T2202 - Tuition and Registration Certificate and the RL-8 - Post-Secondary Education Amount. These slips are used to claim the tuition credit.
What About the Young Worker?
Once in the workforce, young adults benefit from filing their income tax returns. If they earn modest incomes (we all start somewhere!), they can get a refund of the overpayment of taxes from their paycheque through allowable deductions. By reporting their income, young taxpayers also begin to accumulate Registered Retirement Savings Plan Contribution (RRSP) contribution room. If they are not able to contribute this year, they will be able to take advantage of the full tax benefits of saving for retirement when their career takes off.
Good to Know
To receive the GST/HST credit paid quarterly, you must have filed a tax return in the previous year. Whether you earned a small income or no income at all, you can take advantage of this credit as long as you file a return. Another good reason to do your taxes every year!
Electronic Filing: Simple and Advantageous
Filing a paper tax return can be time consuming and complex. Choosing to file your income tax return online reduces the paperwork and the software does all the calculations—no math required.”
To ensure that tax filers get the best possible tax outcome, Intuit TurboTax searches through more than 400 credits and deductions for which they may be eligible. And there’s no tax situation too complex to file online. Employment income, student loans, freelance work, COVID-19 emergency benefits, investment income: everything is covered by TurboTax. Filing your taxes electronically also means you can get your refund faster if you’re entitled to it!
If you are 25 years old or younger, file your tax return online for free, regardless of your tax situation.
Note: This is a syndicated article that originally appeared in La Presse on Friday, April 15.