As a student, you can take advantage of a non-refundable tax credit that allows you to claim interest paid on student loans. There is a catch, however. You can only claim interest paid on federal and provincial government loans. Interest paid on your bank student line of credit, loans from other countries or other private funding doesn’t qualify.
If you haven’t made enough income to take advantage of the tax credit, you can choose not to claim it and carry it forward to a future tax year. The Canada Revenue Agency lets you claim eligible interest paid in the previous five tax years, provided it hasn’t already been claimed. To claim interest, fill in your interest amount both on line 319 on your federal Schedule 1 and on line 5852 on your provincial or territorial Form 428.
References & Resources
- student interest tax
- tax credit tuition
- tax student loan