Tax Savings For Students
I know this is probably too late for the 2008 tax year, but keep this post in mind when you’re ready to help your kids with next year’s tax return.
There are a number of tax breaks that students can claim on their tax return, so make sure they file one and consider these tips when doing so:
Tuition. Students are entitled to claim 15% of the tuition paid during the tax year in question. For example, if you’ve paid $5000 in tuition, you can expect to get $750 back. Books, parking, meals and residence can also be claimed, but you’ll need a T2202A tax form from the school in order to do so.
Education expenses. Aside from the tax break on tuition, you are also eligible to claim $400 per month you are in school for full-time students and $120 a month for part-time
Textbooks. If you are eligible to claim the education expenses tax break, then you are also eligible to claim the tax break for textbooks. It doesn’t matter the exact amount for each text books because this is paid as $65 per month for full-time students and $20 for part-time.
Moving Expenses. If you’ve moved over 40 kms away to attend full-time studies, you can claim your moving expenses against the income earned at a job during the tax year in question.
Transit. If you purchased a transit pass while attending school you can claim that….and remember to hold on to the receipts!
Employment. If you had a summer job you can claim a $1019 for expenses related to work.
Student Loans. If you’ve started to pay back your student loans, you are allowed to claim the interest that you are being charged on your loan.
