Maximizing Your 2023 Student Tax Return: A Guide

Navigating your tax return as a student, whether you’re studying full-time or part-time, unlocks a range of credits specifically designed to enhance your refund or diminish the tax you owe. By including your tuition expenses, student loan interest, and even moving costs, you could significantly improve your tax situation. 

Understanding tax returns can be daunting, but that’s exactly why our team of Tax Experts is here – to ensure you capitalize on every credit you’re entitled to. 

Essential Tax Tips for Students in 2023 

Don’t Miss Out on the Federal Tuition Tax Credit 

The federal tuition tax credit stands out as a major benefit for students in post-secondary education. This credit allows you to claim eligible tuition fees exceeding $100 paid for courses at an educational institution, or for occupational, trade, or professional exams, as long as you have the receipt and the institution is recognized by Employment and Social Development Canada.  

Make sure to retrieve your T2202 certificate, which details your tuition payments for the year. This certificate is usually accessible through your school’s web portal towards the end of February. 

Important to note: The T2202 form has replaced the older T2202A and TL11B forms from the 2019 tax year onwards. 

If you find you don’t need to claim the entire amount this year, you have the option to carry it forward for future use or transfer up to $5,000 of it to a close family member (spouse, common-law partner, parent, or grandparent) to assist in reducing their tax liability. 

Exploring the Canada Training Credit 

For those who paid for eligible post-secondary courses in the year, the Canada training credit is another opportunity to look into. Eligible individuals are those aged 25 to 65 with a specified Canada training limit on their income tax return. For 2023, this limit has increased to $1,000 from the $750 of 2022, as noted on your 2022 Notice of Assessment. 

Unlike the non-refundable tuition tax credit, the Canada training credit is refundable, meaning if it exceeds the taxes you owe, the remainder is returned to you as a refund. However, claiming this credit will affect the amount of tuition tax credit you can claim, transfer, or carry forward. 

Changes in Federal and Provincial Credits 

It’s worth noting that tuition and education credits in Alberta, Ontario, and Saskatchewan have been phased out in recent years. However, if you have any residual provincial tuition credits from past years, you’re still able to claim or carry these forward. 

Similarly, the federal education and textbook credits were discontinued in 2017, but any unused amounts can still be applied to your 2023 return to reduce your taxable income. Remember, these carry forward amounts are personal and cannot be transferred to family members. 

Despite these changes, several provinces and territories continue to offer their own tuition credits, applicable to those who qualify for the federal tuition tax credit: 

• British Columbia  
• Manitoba  
• New Brunswick  
• Newfoundland and Labrador  
• Northwest Territories  
• Nova Scotia  
• Nunavut  
• Prince Edward  
• Yukon  

Claiming Student Loan Interest 

The interest paid on student loans can also work to lower your tax bill. You’re eligible to claim the interest for 2023 or any unclaimed interest from the last five years, provided your loan was sanctioned under specific Canadian or provincial government laws. 

This credit is exclusively yours to claim and cannot be transferred, but if you don’t use the entire credit in one year, you have the option to carry it forward for up to five years. 

Support for Students with Disabilities 

Students with disabilities, or their dependents, might also be eligible for the disability tax credit, which can further reduce tax obligations. Additional expenses related to disabilities, such as special devices or services required for studying, may also be deductible. 

For details on what qualifies for the disability supports deduction, a medical prescription or certification may be required by the CRA or Revenu Québec for those residing in Québec. 

Student Parents and Childcare Expenses 

Parenting students may be able to deduct childcare expenses incurred to attend classes, including daycare, babysitting, and camp fees. This deduction applies to both federal and Québec returns for residents of Québec. 

Moving Expenses for Education 

Students relocating over 40 kilometres for post-secondary education may be able to claim moving expenses. To qualify, you must be a full-time student who has earned income related to the move, such as scholarships, research grants, or awards. 

Scholarship Exemption and Tax Savings 

Many scholarships, grants, and bursaries are fully or partially exempt from taxes, depending on your enrollment status. Full-time students between 2022 and 2023 may find their awards completely tax-exempt, provided they do not significantly exceed living and educational expenses. Part-time students, including those with disabilities, have a limited exemption but still benefit from this tax relief. 

Remember to explore every available credit and deduction to maximize your tax return as a student. With careful planning and the right information, you can navigate your taxes more effectively and possibly save a significant amount.