Tax tips for students

H&R Block Canada
Media Release

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H&R Block - Toronto

- Post-secondary students attending college or university full-time are eligible for the new Textbook Tax Credit. This will be $65 for every month the student qualifies for the education amount. Part-time students can claim $20 per qualifying month. The credit does not depend on how many textbooks you purchase - it is standard for every student who qualifies.

- Under the old tax rules, only the first $3,000 of a scholarship or bursary was tax free. The recent Federal Budget exempted all scholarships and bursary amounts from being taxed if the related program qualifies for the education amount.

- For students who depend on transit to get to campus, your monthly transit passes are a new tax credit. You can claim the credit for passes of a period of at least one month starting July 1, 2006 - but you need the receipts or transit pass to back up your claim.

- Students turning 19 before April 1, 2008 should file a tax return even if they had no income. This will allow them to collect the GST/HST credit for the first payment period following their birthday.

- Students will receive a T2202A for the amount of tuition paid for 2006. This form allows you to claim tuition and education amounts as well as the new Textbook Tax Credit. The student must use the amount on their tax return first to reduce their tax payable to zero. Any amount remaining may be carried forward for use in another year, or may be transferred to a spouse, parent or grandparent.

- If you move more than 40 kilometers to take a summer job, you may be able to claim moving expenses against your employment income at the new location. Deductible expenses include travel, transportation, storage and the cost of meals and temporary accommodation for up to 15 days.

- Interest on government student loans is deductible if some of the loan is repaid during the year. Loans and credit lines outside of the government program are not deductible.

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