How Students Can Save Money this Tax Season
Nothing is certain in life but death, taxes and The Argus providing Lakehead students with helpful content.
That’s right, it’s time to file your 2022 income tax and benefit return. Fear not. The Argus has you covered with everything you need to know about filing taxes as a student.
We’ll cover deadlines, how to file, and, most importantly, ways to put extra 💲 in your pocket.
Deadlines
The deadline to file your income tax and benefit return is May 1st, 2023. If you are self-employed, this deadline is extended to June 15th, 2023.
Filing your return before these deadlines ensures you receive any benefits and credit payments you’re entitled to without delay.
Payment for money owing to the CRA is May 1st, 2023.
How to file
To get your refund faster, you can file online. Make sure you are registered for CRA direct deposit first. To file online, there is a variety of certified tax software that you can use. The CRA has a list of free/pay-what-you-can tax software products.
Ways to save
Who doesn’t want to save money? You may be entitled to certain tax credits and benefits as a student. See the CRA Tax credits and benefits for individuals page to determine what you may be eligible for.
You may also be able to reduce the tax you must pay! Students can claim deductions and credits from education, such as tuition, interest on student loans, moving expenses, and more. To determine what you may be eligible to claim, visit the CRA Education deductions and credits page.
Climate Action Incentive Payment
Residents in Ontario who are 19 and older are eligible for the Climate Action Incentive, provided they file a tax return. CAIP is a tax-free amount paid quarterly to help individuals and families offset the cost of federal pollution pricing.
See Climate action incentive payment - Canada.ca for more details.
GST/HST Credit
The goods and services tax/harmonized sales tax credit is a tax-free credit that helps individuals and families with modest incomes offset the GST or HST they pay. When you file your taxes, you are automatically considered for this credit. Eligibility generally requires you to be 19 or older and considered a Canadian resident for income tax purposes. See the GST/HST page for more details and eligibility requirements. The GST/HST Credit is paid quarterly and will begin in July based on the 2022 return.
COVID-19 benefits from the CRA
In response to the COVID-19 pandemic, the CRA administered emergency benefits and temporary income support (the infamous CERB). Emergency benefits are taxable income, so those who may have had to repay benefit overpayments.
Typically, the year you make the repayment is when you claim the deduction; however, the CRA has expanded the parameters to allow for a carry-back. This year, a special form called the T1B form will enable you to adjust either 2020 or 2021 forms for the amount you repaid in 2022.
Visit the COVID-19 benefits from the CRA page for more information.
Ontario Staycation Tax Credit
Did you vacation within the province of Ontario last summer? If so, you may be entitled to financial compensation-- seriously. If you took a vacation within the province and paid for accommodations (hotel, motel, Airbnb, campsite), you can receive a refund of up to 20% of your expenses. This is a refundable credit, meaning you can still get a credit back even if you don’t have taxes to pay! Cha-ching!
When filing using tax software, there is an area where you can input your accommodation expenses. Make sure to have the receipts to support your claims!
To learn more, visit the Ontario Staycation Tax Credit page.
Filing taxes as an International Student
As an international student, you may need to file a Canadian income tax return. This requirement depends on your residency status. You can visit Taxes for International students studying in Canada for more information on residency status and tax obligations. You can also call the CRA at 1-800-267-6999 for details.
For more information on tax credits and benefits for individuals, visit Tax credits and benefits for individuals - Canada.ca and All deductions, credits, and expenses - Personal income tax - Canada.ca.
Some other helpful online resources include:
Online Course: Learn about your taxes - Canada.ca
There are community resources as well, such as free tax clinics. Students are eligible to seek assistance completing their return from a tax clinic.
Special thanks to Paul Murphy, Senior Communications Officer at the CRA, for speaking with The Argus and passing on these helpful tax tips for students!