Students may be entitled to claim a tax credit for interest they paid in the year (on or before December 31st) on a qualifying student loan for post-secondary education. Either the student or a person related to the student can pay the student loan interest; however only the student is entitled to this tax credit. Unused credits from the current year can be carried forward and be used in the following five years.
Students who have no income or low or modest income and are a resident of Canada may be able to claim the GST/HST credit. They can apply for this quarterly payment by filing their income tax and benefit return.
To claim your tuition fees, the Student should receive an official tax receipt from the educational institution to reflect the amount of eligible tuition fees have paid for a calendar year. Most of the Canadian educational institute issued Form T2202A, (Tuition and Enrolment Certificate) to student in support of the tuition fees paid.
Students who attend a university outside of Canada may claim a credit for tuition and education and textbook amounts on their personal Canadian income tax return. In order to support the claim, students should have their school issue and sign CRA form TL11A Tuition and Enrolment Certificate - University Outside Canada.
Students should keep this form T2202A/TL11A in the event the CRA reviews their claims.
If a student is unable to utilized/fully utilize available tax credits for tuition, education amounts, any excess amounts may be i) transferred to either a Partner or a supporting parent or grandparent (including a Partner's parent or grandparent) or
ii) carried over to a future year (as discussed below).
There are different rules and limits to the amounts eligible for transfer by a student to either a Partner or a supporting parent or grandparent. The student and his/her Partner or supporting parent or grandparent should speak with a professional tax advisor regarding any applicable rules and limits, as well as for guidance on transferring a student's unused amounts.
Track a student's unclaimed credits Students are allowed to carry forward any unused tuition and education credits indefinitely, and any unused credits for student loan interest paid for five years. If a student has paid tuition or student loan interest in the past and has not been able to claim tax relief for those amounts, he/she should keep an accurate record of his/her unclaimed amounts. Once a student begins to work full-time and can use the tax relief that these credits offer, he/she will enjoy tax savings by reducing his/her tax otherwise payable.
Full-time students in post-secondary education should consider claiming moving expenses for their move to school. In order to be eligible to claim the moving expenses, students would have to earn some taxable income while at school (i.e., have a part-time job or receive a taxable scholarship, award or grant). Students should also consider claiming expenses for moving back home again in the summer (provided the student also earns income while at home in the summer). In order for the moving expenses to qualify for a tax deduction, the new home must be at least 40 kilometers closer to the new school or work location. Eligible moving expenses include those associated with travel, transportation of belongings, as well as meals and temporary lodging for up to 15 days.