Tax season is upon us and there are a few things that the CRA wants all students to know.  The CRA’s notice of assessment looks different this year as it has been simplified.  Everything that students need to know is available on the CRA’s designated webpage “Students”, but here are a few highlights that every student should be aware of.

Creating an online account with the CRA.

Students should get registered and create an online CRA account to get easy access to files about themselves and access to the last 10 years of their tax returns.  Students can jump online and quickly update any information, and it allows the ability to link a CRA account with different tax software.  For any student’s that might be concerned about filing their taxes through a tax software, the CRA vets all tax software, has a list of different software that students can take advantage of, and using them is a secure process.  More information is available on the CRA’s designated webpage “File Your Taxes Online: Understand NETFILE”.

Avoiding scams and fraud.

CRA-related scams occur year-round, and there has been an increase in the reported scams over the past few years.  Most CRA scams come in the form of a phone and text message, but scammers have also begun leveraging social media too.  What students should know is that the CRA will either directly deposit money into their account or it will mail them a cheque, but it will never contact them and ask for personal information regarding money.  The CRA may call a student, but they will never threaten them or demand personal information.  The CRA’s online platform is where students can access the latest details, look over ongoing reviews, and it is the most secure way to stay up to date on one’s taxes.  More information is available on the CRA’s designated webpage “Scams and Fraud”.

The First-Home Savings Account.

Buying a home may have become much more challenging for aspiring homeowners, but it is worth knowing that there is a First-Home Savings Account (FHSA).  It might be best understood as a mix between an RRSP and a TFSA, where individuals can deposit money into the account to pay less taxes.  The money that is deposited is tax-free, like deposits made into RRSPs, and can be withdrawn at any time for the purchase of a home with no requirement to pay money back into the account.  More information is available on the CRA’s designated webpage, “First-Home Savings Account (FHSA)”.

Tuition tax credits.

This year there are no dollar limits on tuition tax credits.  They are based on individual tuition costs, which reduces taxes owing.  Students are responsible for getting their tuition certificates from their post-secondary institution.  Full-time students who receive scholarships are exempt from claiming them while part-time students who receive scholarships receive a partial exemption.  Tuition tax credits can be transferred between a student’s family. between a child and their parents, or between spouses.

There are also different disability tax benefits including a caregiver tax exemption and full-time student tax exemption for students with disabilities.  The students who are full-time and enrolled at an online university may be able to claim costs associated for specific learning equipment and software, but these deductions are different from work-from-home claims.  More information is available on the CRA’s designated webpage “Eligible Tuition Fees”.

Make sure to file your taxes before April 30 and talk to a tax representative for information to better understand how you can take advantage of the different tax programs available for students.

—
A special thanks to Medina and Lisa from the CRA who went over the CRA’s highlights with me and for sharing different resources so that Athabasca University students can better prepare for tax season.