As exam time coincides with tax season, filing a tax return is the last thing on students’ minds. It’s unlikely that many students will file before the deadline on April 30. Furthermore, many students think they don’t need to file a tax return because they don’t make enough money to owe any taxes. While this is true, there are a few perks to filing your taxes that may give you an incentive, including putting a little extra cash in your pocket in time for summer.
First, filing a tax return entitles students to receive taxes withheld at source. For example, some employers may have deducted some tax from a student’s pay check. The basic personal amount for the 2010 tax year is $10,382. This means that the first $10,382 of students’ employment income is tax-free. Since most students fall in a non-taxable bracket, coupled with many credits available to them, they are certain to get back taxes that were deducted.
If students are 19 years of age or older, they are eligible to receive the GST/HST credit. This credit is meant to assist individuals with low and modest incomes to help offset all or part of the GST/HST they pay on the purchase of goods and services. In Quebec, students are also eligible to receive the provincial solidarity tax credit. This credit consolidates the QST credit, the credit for individuals living in northern villages and credit for the housing component.
Another reason to file a return is to get a refund of property taxes as a tenant. Students may be entitled to receive the refund if they were Quebec residents on December 31 and they were living as the tenant or subtenant of an eligible dwelling on that date.
In addition, students can claim tuition, education, and textbook amounts to allow them to reduce their income taxes in the current year or carry them forward in the future. Students can also claim interest they pay on student loans and their public transit passes.
Lastly, filing a tax return not only has benefits now, but also for the future. Filing a return creates Registered Retirement Savings Plan (RRSP) contribution room. This will allow students to make contributions immediately when they begin working full time. Deductible RRSP contributions can be used to reduce taxes.
Filing a tax return may be a confusing and arduous task to some; however, retaining the services of a good tax preparer will certainly make students’ lives easier as they concentrate on their final exams.
Kevin Nzomo is a McGill University student and works at Student Tax Prep Canada in Montreal, QC. He can be contacted at [email protected]
Student Tax Prep is not reliable. Don’t go for them.
I emailed all necessary document in March, 2018, and till now, I got NOTHING back…
Same like me… I emailed in March too. he accepted the money for tax return. but still nothing
same here…. i don’t know what to do..
same for me
Same with me. He took my money, and nothing after that!
I am having similar experience. Please how can we get him? I have tried to get his phone number to no avail. It happens he is or was a McGill student. Please does anyone knows his whereabouts?