As the new school year approaches, you may be thinking about moving to your new living quarters, purchasing your textbooks, and meeting up with new classmates. Going to school can be an exciting time, but did you know you are also eligible for tax savings as a student?
If you would like to maximize the return on your investment, paying attention to your taxes now can be a big help in the future. The two primary tax deductions available to students include:
- Moving Expenses – If you are a full-time student who is taking post-secondary courses at an educational institution, you can claim moving expenses as a tax deduction if your new residence is at least 40 kilometres closer to your school. Not only can you deduct moving expenses at the beginning of the school year, but you can also claim this deduction when you move during summer break or a work semester.
- Child Care Expenses – If you are a parent who is also a student, you can claim child care expenses on your taxes each year. Additionally, the Child Tax Benefit (CTB) provides monthly payments to families with children younger than age 18 based upon their total household income. You must apply to receive the CTB, but this may be a big help to your family as you maintain a household while attending school.
In addition to tax deductions, Canadian students are eligible for non-refundable tax credits including:
- Tuition, education & textbooks
- Canada employment
- Public transit
- Interest paid on student loans
You can also check on deductions and tax credits that might be available to you by checking with your specific province.
At BlueRock Wealth Management, we are dedicated to helping you plan for you and your family’s financial future. If you are a new or returning student, we can assist you in determining whether you can claim any or all of these deductions and credits on your taxes. Most importantly, keeping good financial records will help keep you organized and ensure that you get the most out of your education.
Contact us today for more information and to learn how you can achieve your financial goals.