The Canada Revenue Agency (CRA) is expected to distribute up to $2 billion in tax refunds to post-secondary students in 2025. This is a significant opportunity for students to save money and claim refunds from the government.
If you’re a student who paid tuition, received scholarships, worked part-time, or even didn’t earn income, filing your taxes can lead to valuable credits and deductions. Here’s a breakdown of the most crucial things you need to know about the process.
Why Should Post-Secondary Students File Taxes?
According to H&R Block Canada, filing taxes as a student can unlock various tax credits and deductions, potentially saving you money.
The tax benefits you can access depend on your individual circumstances, such as tuition payments, part-time work, or scholarship awards.
In 2024, H&R Block reported that about 85% of Canadian students who filed taxes received a tax refund, with an average payment of $1,550.
Key Tax Credits Available for Students
There are several tax credits and deductions available to post-secondary students that can help reduce the taxes you owe. Here are the key credits you should consider:
1. Tuition Tax Credit
- You can claim the provincial or territorial tuition fees, education, and textbook fees to lower your tax burden.
2. Student Loan Interest Tax Credit
- This allows you to claim the interest you paid on your student loan to reduce the amount of tax you owe.
3. Moving Expenses Deduction
- If you moved closer to your school, you might be eligible to claim moving expenses (if your new home is at least 40 kilometers closer to your educational institution).
4. Disability Tax Credit
- Students with disabilities may apply for the disability tax credit, which can lower the amount of income tax they need to pay.
What Happens If You Don’t File Your Taxes?
Failing to file your taxes could cause you to miss out on government payments like the GST/HST credit and the final Canada Carbon Rebate payment. These payments provide financial relief, especially for students with no dependents.
- GST/HST Credit: If you’re single with no children, you could receive up to $519 annually.
- Canada Carbon Rebate Payment: For students living in certain provinces, the rebate can range from $95 to $225.
Tax Filing Deadline and Penalties
The tax filing deadline in Canada for the 2025 tax year is April 30, 2025. Filing your return after this date could result in a late-filing penalty, and your benefit payments might also be delayed.
Tax Benefits for Students
| Tax Credit | Benefit |
|---|---|
| Tuition Tax Credit | Reduces tax owed by claiming tuition, education, and textbook fees. |
| Student Loan Interest Tax Credit | Reduces tax owed by claiming interest paid on student loans. |
| Moving Expenses Deduction | Deducts moving expenses if relocating closer to school (min. 40 km). |
| Disability Tax Credit | Reduces taxes owed for students with disabilities. |
| GST/HST Credit | Up to $519 for single students with no children. |
| Canada Carbon Rebate | $95 to $225 for single students in select provinces. |
Filing your tax return is essential for post-secondary students in Canada to take advantage of available credits and deductions that can help reduce the taxes owed or lead to refunds. Make sure to file before April 30, 2025 to avoid any penalties and to receive all eligible government payments.
FAQs
What happens if I don’t file my taxes as a student?
Failing to file could result in missing out on key benefits such as the GST/HST credit and Canada Carbon Rebate, as well as potential tax refunds.
How much money can I get back in tax refunds?
Most students in Canada can expect a refund, with the average refund amount being approximately $1,550.
What is the tax filing deadline for 2025?
The tax filing deadline is April 30, 2025. Filing late may result in penalties and delayed benefit payments.
How can I claim the student loan interest tax credit?
You can claim the interest paid on your student loans when filing your tax return to reduce your taxes owed.