Filing taxes as a student isn't just about money

Sigh…It’s tax season again.

For many students, the word “taxes” evokes the same feeling as when you get a surprise quiz, being called out to answer a question in class or remembering an assignment that’s now past due.

The same feeling of confusion, stress and the strongest urge to avoid it altogether.

But it doesn’t have to be that way.

You see, filing taxes is more than just about the money. It’s about building your financial foundation and setting yourself up for long-term success.

So here are some reasons why filing your taxes is actually benefitting you:

Maintenance of financial record

person using macbookPro Photo — *Photo by Campaign Creators on Unsplash.*

Similar to our online presence being our digital footprint, think of your tax return as your official financial footprint. Every time you file your taxes, you’re creating a documented record of income that can help you in the future. With this financial record, you are able to:

Get a tax refund.
Claim interest on student loans.
Improve tax literacy.
Take advantage of savings plans.

Planning to apply for apartment rentals? Student loan? Line of credit? Your Notice of Assessment has your back.

Notice of Assessment (the document you receive after filing your taxes) often plays a key role. It shows proof of income and confirms your financial standing. Without that record, certain applications can become delayed or more complicated than they need to be.

And we get it, retirement is the last thing on your mind right now. But by filing taxes right now, you build up an RRSP contribution room that will benefit you in the future.

Even if you earned little to no income in a year, filing still matters. It keeps your record active and up to date.

Benefits that you might be missing

person using black computer keyboard photo — *Photo by Towfiqu barbhuiya on Unsplash.*

Many students don’t realize that by filing their taxes, they unlock government benefits and credits.

By not filing them, you may miss out on benefits such as tuition amounts, interest on student loans, moving expenses, etc.

These payments add up, and more often than not, students miss out on them by avoiding tax filing altogether.

Avoid future problems

person in brown long sleeve covering their face with the palm of the their hands — *Photo by Priscilla Du Preez 🇨🇦 on Unsplash.*

Putting off taxes for years might seem harmless, but so did putting off studying for that one quiz— yeah, we don’t want to repeat that.

Avoiding filing your taxes now can seem like the better option, but when it catches up to you later, it can be overwhelming. Missing returns can delay benefits, complicate financial aid applications and create immense stress down the line. (Stress that’s totally manageable right now.)

Besides, starting early never hurts anybody. It keeps things simple and running smoothly.

Build financial confidence

man in white dress shirt sitting beside a woman in a suit — *Photo by krakenimages on Unsplash.*

Filing your taxes for the first time can feel intimidating, but it can also be empowering. Imagine being able to do what many find the scariest in the whole world.

It can also build your financial confidence. You learn how income is reported, what deductions and credits mean and how exactly refunds work.

You are not just earning money then, you are mastering how to manage it.

Learning to file your taxes early gives you clarity about how the system works and builds confidence that carries into other financial decisions, including budgeting and investing.

Learn with IGNITE

A zoomed in picture of the IGNITE's tax care infographic pamphlet — *Photo by IGNITE*

Don’t know where to learn? Learn with us!

Book an appointment and visit the IGNITE Tax Clinic, where the volunteers are not only trained to help file your taxes but also ensure that you get the hang of it.

Instead of someone just “doing it for you,” you’ll gain insights into:

The documents you need.
The platforms to use.
What Notice of Assessment actually means.
How to stay organised for the next tax season.

Because no matter what — we got you!

$tart now! (your future self will thank you)

A studnt filing her taxes with the help of an IGNITE Tax Clinic volunteer — *Photo by IGNITE.*

Filing your taxes might not feel urgent when you’re juggling assignments, part-time jobs and on-campus life. But starting early builds a financial track record, unlocks benefits and helps you develop lifelong money skills.

It’s not just about money, it’s about creating a strong financial setup for the future.

Your future self will thank you.

And if you’re unsure where to start, the IGNITE Tax Clinic is here to help you learn, file and feel confident doing it.

So what are you waiting for?

Feature image courtesy of Kelly Sikkema via Unsplash.

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