While not traditionally acknowledged, academics are also a demanding experience. In the era of “work-life balance” academics ask you as the student to focus on lectures, studies, assignments, and also the traditional demands of life. Financial constraints and demands also show up, especially due to costlier education.
In this sense, having to navigate the intricacies of taxation is far too overwhelming. For many, it may not be worth it. However, as a student in Canada, you stand to gain a lot by figuring out your tax-related responsibilities! The best part, tax-savings can be achieved simply with the assistance of an accountant. Here’s how:
Tax Credits for Tuition Fees
If you’re studying in Canada, you stand to benefit from tax credits for tuition fees. This benefit extends not just to Canadian students but also to international students currently studying in Canada. If your tuition expense is higher than $100, you can avail a tax credit! This credit is not limited and can be availed in diverse settings – from CEGEPs to Universities. In fact if you’re currently engaged in a professional skill improvement course from an accredited establishment, this credit is something you’re invited to take full advantage of!
However, it’s also important to understand the exact operationalization of this benefit. A tuition tax credit is non-refundable. To put it simply, the credit reduces the amount of tax you owe rather than giving you a direct refund. Based on your tax liabilities and potential credits, you can completely offset any taxes owed.
If, for instance, you do not use the excess credit in the current financial year, you can choose to carry it forward to the next year. This can be a strategic decision, letting you save taxes when your income increases!
Gaining The Benefits
Now that you know a good way to save some money while pursuing education, it might be tempting to jump right into it and get the process started! Unfortunately, any tax work is often slow, bureaucratic, and difficult to grasp. You’re required to produce a variety of paperwork, from current documents to completely new forms. Any error in paperwork, documentation, or process means already valuable time and energy being wasted.
This is where the professional services of comptable Accotax come in! A dedicated accountant can instantly figure out the path of least resistance towards gaining a tax credit, while also advising on the best way to utilize it.