Tax tips for students

As Labour Day approaches, students might be surprised to learn planning for school also means that they should be thinking about next year's tax-filing deadline. According to the Institute of Chartered Accountants of Ontario, there are taxation-related steps a student can take to minimize the costs of university.:

- Scholarship, fellowship and bursary income received  in a taxation year with respect to post-secondary education or occupational training is not included in income. For taxation years before 2006, the first $3,000 of this income was exempt from tax. 

-  In 2006, the federal government introduced a non-refundable tax credit to assist with the cost of textbooks for post-secondary students. The textbook credit is calculated base on $65 for each month the student qualifies for the full-time education tax credit and $20 for each month the student qualifies for the part-time education tax credit. 

- Tax refunds: Depending on a student's earnings from summer or part-time jobs, they may qualify for tax refunds, especially if they apply and qualify for GST rebates, tuition credits, education credits or the student loan interest credit.

- Students who move to attend full-time post-secondary school may  claim costs associated with moving against income from scholarships,, research or similar grants (that isn't exempt) or from part-time jobs they hold while going to school. 

- Transit expenses: The federal government oofers offered a tax credit to help pay the cost of public transit passes.