Tax credits for students

Tuition costs are rising, so the government says it will continue to offer tax relief to Canadians who are continuing their studies.

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“Students and their families are faced with significant costs for tuition and enrolment in post-secondary educational programs,” says Kerry-Lynne Findlay, minister of national revenue for London North Centre. “At the same time, post-secondary education is increasingly important in a global marketplace and a significant contributor to Canada’s economic growth and global competitiveness.”

Read: 9 tax tips from CRA

The following programs offer tax relief for students:

• Students can claim tuition fees paid to a university, college, or other educational institution in Canada for courses taken at the post-secondary level. Tuition fees paid for courses certified by Employment and Social Development Canada to develop or improve skills in an occupation also qualify;
• Students can claim an education amount of $400 for each whole or part month in the year in which they are enrolled full-time in a qualifying educational program, or $120 per month for part-time enrolment in a specified educational program, at a designated educational institution;
• Students can claim a textbook amount of $65 for each month where they qualify for the full-time education amount or $20 for each part-time month.

Read: Higher education is a financial nightmare

In addition to these tax credits, students may be eligible for the goods and services tax/harmonized sales tax (GST/HST) credit — a tax-free quarterly payment that helps individuals and families with low or modest incomes offset all or part of the GST or HST they pay. They may also claim a deduction for their moving expenses if they moved to study as a full-time student enrolled in a post-secondary program at a university, a college, or another educational institution.

Students may be able to claim amounts for interest paid on their student loans and they may also be eligible to claim the public transit tax credit for the cost of their public transit passes for travel within Canada on public transit.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.