Education

Tax Tip: What Tax Breaks Are Available for Students?

Canadian students can claim a tax credit equal to 15 percent of their qualifying tuition, education and textbook expenses. For example, if your qualifying expenses add to $10,000, you earn a $1,500 tax credit. If your tax credit exceeds the amount of tax you owe, consider transferring the remaining credit to your spouse or common-law partner, your parents or grandparents, or your spouse’s parents or grandparents to offset their tax bills. Transferring your credit is a great way to pay back family members who are helping you with school. Alternatively, you could complete a Schedule 11 and carry forward your tax credits so that you can use them when you start earning a larger income after graduation.