I was reading one of the magazines which I have taken an interest lately, Money Sense, which is a Canadian publication that targets the average homeowner/student and they had a great article featured about how students and parents of student can save a lot on education by filling properly and using the benefits to the fullest. Since many of you may have missed this article, I think it would be helpful to share these tips with everyone, so if you know a university student, be sure to pass this along to them!
- Tip #1- File a tax return even if you didn’t earn enough to pay income tax. This will guarantee that you recieve the $350 GST rebate at the very least and that you recieve a refund of any taxes you may have paid through payroll deductions with your employer.
Jack’s Thoughts
- I can’t argue with this at all, a great piece of advice. If you are looking to become more proactive in taking care of your taxes, HR Block has the best options for students I have seen. They will prepare your return for $29.95 and provide you with great tips for staying tax healthy throughout the year. I believe they also offer classes where you can learn how to prepare and file your own return - HR Block Link
- Tip #2 - You can claim $400 a month for each month you attended college or university full time ($265 a month for part-time students). You can also receive a tax credit of $65 for textbooks ($20 a month for part-time students).
Jack’s Thought’s:
Alright, so basically, the government is giving you a tiny part of the money you pay to go to school back. Take it where you can get it. With textbooks averaging $500 a semester, and tuition in Ontario the highest in Canada, you should take the help where ever you can. This is really a no-brainer to claim these amounts. - Tip #3 - You can claim any tuition fees over $100 as a tax credit. Eligible fees include any mandatory amounts charged by the school.
Jack’s Thought’s: A tax credit is basically the government recognizing that you have made a partial payment towards taxes that you owe - So instead of paying tuition, and full taxes - file a return so that your tuition counts towards what you would owe. It should save you money in the long run.
Closing Notes
- I found all these tips very helpful because I’m a fulltime post-secondary student myself. I’ve been filing a return since I was 16, and each year I try to learn a little more so that I can save more.
- I really recommend that you take an interest in your own tax return, because it will help you understand your personal finances just that much more. Don’t skimp when it comes to this task either, if you aren’t absolutely sure how to do it yourself, then have it done by a professional, it is 100% worth it.
- I hope that at least one of you out there did find it helpful though, and can save a little dough in this crazy economic downturn!
Original Article: Money Sense (October 2008)
