STORY BY DANA BOYINGTON
It’s tax time, Sheridan. That time of year that everyone seems to dread. But, there are many helpful knacks that can help students save money, according to Canada’s tax watchdog.
Canadian Revenue Agency (CRA) spokesperson Fiona He recommends students file a claim for tuition, education and textbooks, which will allow students to reduce any income tax they may owe. In doing so, students could also save money for future expenses.
“In future years, when you [students] start getting income taxes, you [students] can use your tuition and education amount to help support your future costs,” He said.
According to the CRA, a full time student can save $1600 a semester and a part time student could save $480 a semester, when filing for an education amount claim.
The CRA runs a free program throughout certain Canadian cities that teaches citizens how to do their own taxes.
He says, “[When one finishes the program], they can teach others how to do their own income taxes. They can become volunteers themselves.”
Sheridan Davis student Rahul Lohana, 24, has been filing taxes since becoming a permanent resident of Canada three years ago.
“I think that students must know where their taxes are going. Whether to [infrastructure, health care or police],” Lohana says.
Canadian laws and regulations are constantly changing, and Lohana believes students should always keep themselves updated.
“Whenever you [students] get time, they should keep themselves updated on Canadian laws and important dates, as the Canada government changes every day,” Lohana said.
Royal Canadian Bank of Canada (RBC) recommends that families set up a Registered Education Savings Plan (RESP) for a grandchild, son or daughter. According to RBC, the type of RESP investment, may determine the amount of the return on investment. Also, the Government of Canada will contribute 20 percent to a maximum of $500 up to the age of 18.
Abhinay Tiwari, RBC representative, said, “It [money in RESP] can be used toward any expense, that can assist students.”
One common mistake that occurs with tax filing is missing deadlines. The CRA urges Canadians to remember April 30, as the date taxes must be filed.