It is hard enough having to concentrate on your studies, then take on the financial responsibilities of your education without having to consider your tax implications, yet it is an additional burden as a Canadian student that you may be faced with.
If you are going to take advantage of any potential student tax breaks then you at least need to learn about the basics of the CRA tax program related to students. You will have to determine what is applicable to you both by way of responsibility and incentives in the tax system, based on whether you are a full time or part student.
You may think that because you are a student that there is no point in utilizing the services of a professional such as a Toronto tax accountant. What you may want to keep in mind though, is as a student you are going to be in this position for a few years. You want to get your student tax obligation off to a good start which means approaching it in the right way right from the beginning. A tax accountant can help you do this, as well as be available to you for each of the remaining years that you continue as a student. These professionals can help you with a little tax planning to help you become eligible for the potential tax breaks that may be available to you.
Even choosing the right educational institution can have an impact on your taxes. The CRA clearly outlines what is considered a designated educational institution. With so many private choices for education now being available it is important to make sure that your choice of institution is going to come under an acceptable educational category.
Another area of confusion that often comes with the new student regarding their taxes is whether they qualify as a full time or part time student. Normally the CRA will rely on the educational institutions definition of this regarding the program you are enrolled in.
Just because you are a student does not definitely mean that you must file a tax return. The CRA outlines who must file according to specific criteria.
As a parent you may be still assuming the financial responsibility for your youngster’s education and this is going to have tax implications for you as well. Perhaps the young person is working part time to help with the cost. All of these circumstances have specific tax criteria. Rather than second guess on how to prepare taxes that involve educational matters, give Sam Seidman a call at 416-398-1700 and make arrangements to get your taxes done right.
