The Canada Revenue Agency (CRA) suggests eight ways students can trim their tax bills.
#1. Claim eligible tuition fees
An eligible tuition fee is a fee students pay to attend a post-secondary educational institution for the tax year in question. Enter the tuition amount on line 320 of Schedule 11, Tuition, Education, and Textbook Amounts.
#2. Claim the education amount
Full-time students (or a part-time students who can claim the disability amount or have a certified mental or physical impairment), can claim $400 for each month they were enrolled. Part-time students can claim $120 for each month they’re enrolled.
#3. Claim the textbook amount
They can claim this amount only if they’re entitled to claim the education amount. Students can claim:
- $65 for each month they qualify for the full-time education amount (total of Box C times $65). Enter this amount on line 7 of Schedule 11; or
- $20 for each month they qualify for the part-time education amount (total of Box B times $20). Enter this amount on line 4 of Schedule 11.
#4. Claim interest paid on student loans
Students may be able to claim an amount for the interest paid on loans in 2013 for post-secondary education. They can also claim interest paid over the last five years if they haven’t already. Only interest paid on loans received under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or a similar provincial or territorial government law for post-secondary education can be claimed.
#5. Claim the public transit amount
If they use public transit, they may be able to save by claiming the cost of transit passes. Advise them to keep their transit passes for local buses, streetcars, subways, commuter trains, and local ferries, and enter the total public transit amount on line 364 of Schedule 1, Federal Tax.
#6. Claim your eligible moving expenses
If they moved for their post-secondary studies and they’re full-time students, they may be able to claim moving expenses. But they can only deduct these expenses from the part of their scholarships, fellowships, bursaries, certain prizes, and research grants that are required to be included in their income.
If they moved to work, including summer employment, or to run a business, they can also claim moving expenses. But they can only deduct these expenses from the income earned at the new work location. To qualify, their new home must be at least 40 kilometres closer to their new school or work location.
#7. Claim the GST/HST credit
If they have low or modest income, and they’re are a resident of Canada, they may be able to claim the goods and services tax/harmonized sales tax (GST/HST) credit. They can apply for this quarterly payment by filling out the application on the first page of their income tax and benefit return.
#8. Claim child care expenses
If they have to pay someone to look after their child so they can go to school, they may be able to deduct child care expenses.
CRA has videos geared toward students. Check them out here.