It is officially tax season! Rest assured, the deadline for most individuals to file their 2021 taxes is not until April 30th, 2022.
The Muse has been provided with an article from the Canada Revenue Agency to educate students on filing their taxes.
We also want to direct students to the MUN Tax Clinic. The MUN Tax Clinic is a volunteer organization that offers free tax filing services for students and individuals of the general public with modest incomes. You can book an appointment by emailing taxclinic.mun@gmail.com.
Please ensure you have all your necessary tax slips before booking an appointment. For more information you can follow MUN Tax Clinic on Facebook at https://www.facebook.com/muntaxclinic/.
A Student’s Guide to Filling Their Taxes
Discover the many reasons students should file their income taxes.
Tax-filing season is upon us! Most Canadians have until midnight on Monday, May 2nd, 2022, to file their income tax and benefit return. As a student, you may have many questions about taxes and might be filing a return for the first time. It’s important to know that even if you’re not making much money, filing can often lead to extra cash in the bank.
Why students should file their taxes
Did you know that most of the money you spend on tuition may be used to claim a tax credit? The credit is non-refundable, meaning it will reduce your federal tax up to the amount of tax owing. You can also carry it forward to after university when you’re making more and owe tax on your income. You can also transfer it to your family or partner to help them reduce their tax owing.
Another major reason to file your taxes is that you could receive benefit and credit payments if you file your return every year, even if your income is tax-exempt or you have no income earned in the year.
For example, you may be eligible to get a tax-free credit payment four times a year, known as the GST/HST credit. This payment is for people with low or modest incomes, and the best part is you do not have to apply for the credit. When you do your taxes, the Canada Revenue Agency (CRA) will determine your eligibility and let you know if you qualify.
Gather your documents
If you have a job, you will need to report this income and any other sources of income. That could include tips, scholarships, bursaries, study grants and payments from a registered education savings plan (RESP). Suppose you’re lucky enough to receive a cash gift from your family or another benefactor. In that case, that money doesn’t count as income.
Next, think of all your expenses and deductions. Did you move for school? If so, you can claim your moving expenses. Are you making payments on your student loan? You can claim part of the interest you’ve paid.
You’ll also receive a form from your post-secondary institution that outlines the tuition paid to your school. With this, you can claim tuition to reduce your tax owing.
COVID-19 benefits
If you received benefits issued by the CRA in 2021, such as the Canada Recovery Benefit, you would need to report that income on your tax return. The CRA will mail you a T4A slip with the information you need by the end of February 2022. T4A slips will also be provided online if registered for My Account.
Learn about your taxes
This year, the CRA has a new online learning tool called “Learn about your taxes” to help inform students and empower them to do their taxes on their own. The free online learning tool provides you with lessons that help you understand what taxes are, why we pay them, how to read your pay stubs and income tax slips, and finally, how to do your taxes. Following each lesson, you can test yourself with exercises and quizzes.
How to file
There are a variety of certified software products to meet your needs, some of which are free.
Filing online is the quickest way to get your return. One last tip, if you have a modest income and simple tax situation, a volunteer through the Community Volunteer Income Tax Program can do your taxes for you — for free.
Find more information specific to your situation at canada.ca/taxes-students and canada.ca/taxes-get-ready.
Provided by the Canada Revenue Agency
