Five Tax Tips for students and residents


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  1. File a tax return.

    You may think that because you're a student and earn zero or very little income, you don't need to file a tax return. However, by completing a tax return, based on income thresholds, you will ensure your eligibility for the Goods and Services (GST)/ Harmonized Sales Tax (HST) Credit, Canada Child Tax Benefit and certain provincial tax credits. This may result in extra cash in your pocket. By simply filing a return, you are creating RRSP contribution room based on your "earned income", so when you do begin contributing to an RRSP tax can be deferred.

  2. Moving expenses.

    If you have relocated at least 40 kilometers closer to a new work location or to attend full time post-secondary education in the past tax year, you may be able to deduct allowable moving expenses against employment income earned at the new location and for students, against taxable scholarship or grant income - they are not a tax credit. You may also be able to claim moving expenses to go back home for the summer break.

  3. Tax credits.

    As a student, you may be eligible for a variety of tax credits, including the following:

    • Education costs
    • Tuition costs
    • Text book credit
    • Interest paid on a student loan
    • Public transportation
    • Child care

    Speak to your MD advisor to learn how these can work for you.

  4. Tax-free assistance.

    If you are receiving a scholarship, bursary or fellowship, you can claim an exemption on your tax return.

  5. Take a loan from your parents' corporation.

    If you decide to take a loan from your parents company, the value of the loan will be included in your income in the year it was received, however, you'll pay little or no tax on this amount if your income is low. The bonus? Once you graduate and start working full time, you can repay the loan and receive an income deduction for the amount of the repayment.