Why Should Students File Taxes?

When to File Taxes?

In Canada, the tax filing deadline is usually April 30th each year. If you owe taxes, this is the last day to pay them. If you don't owe taxes, there’s no penalty for filing late, but the sooner you file, the sooner you can receive any potential refunds.

What to Prepare Before Filing?

1. Personal Information: This includes your SIN (Social Insurance Number), address, bank account information, etc.

2. Income Information: This includes T4 slips (if you have a job), scholarships, grants, etc.

3. Tuition and Education Expenses: This includes T2202A forms, which your school provides as proof of tuition and education expenses.

4. Other Deductions and Credits: This includes moving expenses (if you moved for school), medical expenses, public transit costs, etc.

Ways to File Taxes

1. Online Filing: This is the most convenient method. You can use CRA-certified tax software such as TurboTax, UFile, etc. These software programs often have free versions for students.

2. Paper Filing: You can download paper tax forms, fill them out manually, and mail them to the CRA.

Tax Benefits for Students

1. Tuition Tax Credit: You can use the tuition and education expenses on your T2202A form to reduce your taxable income.

2. Textbook Amount: If you qualify for the tuition tax credit, you may also claim a textbook amount.

3. Moving Expenses: If you moved for school and meet certain conditions, you can deduct some moving expenses.

4. Public Transit Amount: If you purchased long-term public transit passes, you can claim a portion of these costs.

Handling Tax Refunds

If you are eligible for a tax refund, the CRA will deposit the refund directly into your bank account (if you chose direct deposit) or mail you a cheque. Once you receive your refund, consider using it to repay student loans or save it for future needs.

Common Questions

1. I have no income. Do I still need to file taxes? Yes, filing taxes can help you access various tax benefits and refunds, even if you have no income.

2. I have a part-time job. Do I need to file taxes? Yes, regardless of how much you earn, you need to file taxes if you have any income. Your T4 slip will show your income and the taxes already paid.

3. Does filing taxes cost money? Using online tax software is usually free, especially for students with low incomes.

Conclusion

Filing taxes is an important financial responsibility for students. It helps you understand your financial situation and access various tax benefits and refunds. By following this guide, preparing the necessary information, and choosing the right method for filing, you can easily complete your taxes and start enjoying the benefits of filing your return.