What Kind of Student Income Do You Have to Consider For Taxes?
As a student you may have already dealt with some previous tax years so you have a good idea of what is expected from you relating to taxes. Then again you may not have even given this much thought or perhaps assumed that you didn’t even have to file taxes being as you are not yet full time in the working world. You may have made some wrong assumptions, even if you have not worked during the summer months, or had a part time job to help supplement your school expenses.
It is important to know what is actually considered as income for tax purposes as a student, which dictates that you must file a tax return.
You are probably aware that income you received as a result of working for it is taxable. What you may not have considered is that even if you only earned tips or occasionally earned income that this too could put you in tax situation. Then also perhaps you have relied on some investment income to help you with your education costs. These again could lead you into a tax obligation.
You must also give thought to any bursaries, grants, scholarships as well as other sources of money and how they relate to your obligation to include them on your tax return. All too often taxes are not done correctly when it comes to student income, simply because the tax filer had no idea just what the CRA expected them to claim. Yes, it is true that they have plenty of help guides available, so ignorance of the law is no excuse. For some though even these guides can be difficult to follow.
As a student to ensure that you are not only complying with the law regarding your tax filing, but also to take advantage of what the Canadian government may allow you for tax breaks, you would do well to utilize the services of an accountant.
Many people have the misconception that a tax accountant is only meant for those who have a ton of money that has tax implications, or for large businesses. This is certainly not the case, and in fact any individual who may have a responsibility to file a tax return whether they owe money or not can benefit from an accounting expert.
If you have become concerned that you now realize you should have filed in past years even as a student, but have not done so, give Sam Seidman a call at (416) 398-1700 so he can help you get back on track with your student tax obligations.