Filing Student Taxes: A Complete Check-List
Important Deadlines and Expectations
Tax Filing Deadline: April 30 of the year following the tax year (or the next business day if April 30 falls on a weekend or holiday). Make sure to file your tax return by this date to avoid any penalties or interest charges.
Refund Timeline:
Online returns: Expect your refund within 2 weeks.
Paper returns: Refunds are processed within 8 weeks after receipt.
Who Needs to Pay Income Tax?
Residency Matters: If you live in Canada for at least 183 days a year, you are considered a Canadian resident for tax purposes.
This includes both domestic and international students who meet the residency criteria.
Taxable Income Includes:
Job earnings: Income from full-time, part-time, or freelance work.
Tips and occasional income: Money earned from side gigs or one-time jobs.
RESP payments: Educational Assistance Payments received from a Registered Education Savings Plan.
Scholarships, grants, and bursaries: Some may be exempt, but most are taxable.
Interest or investment income: Earnings from bank accounts or investments.
Non-Taxable Income:
Student loans: Loans like OSAP are not considered income and are therefore not taxable.
Filing Requirements
Income Threshold: You need to file a tax return if your annual income exceeds a certain threshold ($15,000 for 2023), or if the Canada Revenue Agency (CRA) requests it.
Why File Even If Not Required?:
Potential tax refunds: You might get back some of the taxes you've paid.
Government benefits: Filing is the only way to receive benefits like the GST/HST credit and the Climate Action Incentive Payment.
Deductions and credits: Reduce your taxable income and potentially increase your refund.
Carry forward unused credits: Use them in future years when you might have a higher income.
How to File Your Tax Return
Online: Use DIY software if you are well-versed in preparing and filing an accurate income tax return.
Paper: Print the necessary forms from the CRA website and mail them to the appropriate tax centre.
Ensure all forms are filled out correctly to avoid delays.
Free Resources: Look for free tax clinics available in March and April, often held at community centers, libraries, and universities.
Expert Help: Hire a professional accountant to do it for you.
Did you know?
Blackspark offers a no-obligation, free call with one of our licensed CPAs - they’ll advise you on your personal taxes and provide an upfront price to prepare your tax return.
Documents Needed
Identification:
Social Insurance Number (SIN): Essential for filing taxes.
Individual Tax Number (ITN): Apply using Form T1261 if you're a non-resident without a SIN.
Tax Slips:
T2202 (Tuition and Enrolment Certificate): Provided by your educational institution, showing tuition fees paid.
T4 (Statement of Remuneration Paid): Issued by employers, detailing your earnings and deductions like taxes and employment insurance.
T4A (Statement of Pension, Retirement, Annuity, and Other Income): For income from RESP, scholarships, or grants.
T5 (Statement of Investment Income): For interest or investment income over $50 from non-registered accounts.
Student Deductions and Credits
Deductions:
Moving Expenses: Deduct costs if you moved 40km or further to attend school. This includes transportation, storage, and temporary living expenses.
Child Care: Deduct expenses if you pay for child care for children under 16 to attend school.
RRSP Contributions: Deduct eligible contributions or carry forward to future years for potentially greater tax savings.
Tax Credits (2023 amounts shown):
Canadian Employment Amount: Claim up to $1,368 for job income, reducing your federal taxes by up to $205.20.
Tuition Amount: Claim up to $5,000 for tuition fees, reducing your federal taxes by up to $750.
Eligible fees: Include tuition, admission, library, lab, and exam fees.
Canadian Training Credit: If you're between 26-64 and have a T2202, claim up to half of your tuition as a refundable credit.
Student Loan Interest: Claim interest paid on government student loans like OSAP, and carry forward unused amounts for up to five years.
Additional Tips
Non-Taxable Student Loans: Remember, loans like OSAP aren’t taxable, so you don’t report them as income.
ITN for Non-Residents: If you can't get a SIN, apply for an ITN to file taxes. Form T1261 is used for this purpose.
CRA My Account: Register to access electronic copies of tax slips and other tax-related information.
Remember, filing your taxes as a student might seem daunting, but it’s worth it for the benefits and potential refunds!
This blog post is intended to provide general information only and should not be construed as tax advice or opinions. Always consult a qualified accountant before making any decisions regarding your tax situation.
