September 2021 Tax and Money Tips - Students

Hello everyone! Happy Fall! Happy Mid Autumn Festival!

Weather is cooler and it gets dark earlier. Time to cozy up inside. Fall marks going back to routine, activities and "business as usual." This month's theme is "Back to School", so I will be presenting tips related to students.

1. Do you have students attending post-secondary in a different province or country? If your child is away temporarily and will be returning home during school breaks or after graduation, he/she is still considered a resident of your home province since the move is temporary.
Source: 
- https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/getting-a-tax-return.html

2. Is your child receiving scholarships? If he/she is a full-time student, then the scholarship is not taxable. For part-time students, the scholarship exemption is equal to $500 plus the tuition paid plus the costs of program-related materials.
Source:
- https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/p105/p105-students-income-tax.html

3. If a student has unused tuition tax credit for the current year, he/she can:
- transfer it to his/her spouse, parent, grandparent or
- carry forward the tax credit for his/her own future use.
Source:
- https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-32300-your-tuition-education-textbook-amounts/transferring-carrying-forward-amounts.html

Feel free to share this newsletter with others. Have a great month!


Photo by Naassom Azevedo on Unsplash