Taxes may seem tricky, but they’re an easy way to get benefits back!
As an international student in Canada, taxes might not be high on your to-do list, but here’s the thing: filing your taxes can lead to refunds and benefits that you won’t want to miss out on.
It doesn’t matter if you’re here for just a year or a few. Understanding taxes is something every student should get the hang of.
So, whether you’ve just landed in Canada or have been here for a while, the first step is figuring out whether you’re a “resident” or “non-resident” for tax purposes. Once you’ve got that sorted, you’re well on your way to mastering taxes like a pro!
And don’t worry — the IGNITE Tax Clinic is here to help! We offer free assistance, making the tax process simple and stress free.
Let’s break it down in a way that’s simple and easy to follow.
Why you should file your taxes
Let’s start with the basics: why on earth do you need to file taxes as an international student? After all, you’re here to study, not to become a tax expert, right?
Well, filing your taxes isn’t just about paying the government—it’s about making sure you get back all the money that’s rightfully yours.
Even if you didn’t earn a ton of income, filing your tax return could help you get a refund for things like tuition or even public transit passes.
If you worked a part-time job, received a scholarship or had any income from Canadian sources, you’re legally required to file a tax return.
But even if you didn’t earn any money, it’s still a good idea to file because there are tax credits and benefits—like the GST/HST credit—that you could qualify for, which might put a little extra money back in your pocket.
Understanding your residency status for taxes
Tax stuff can seem confusing, but figuring out your residency status for tax purposes is the first step to making it simpler!
Resident: If you’ve got a Canadian address, a bank account or other strong ties to Canada, you’re likely a resident. This means you need to report all your income—both from Canada and your home country.
Deemed resident: If you’ve lived in Canada for 183 days or more in a year, you might be a “deemed resident,” even without those personal ties. As a deemed resident, you still report worldwide income and get the same tax credits as full residents.
Non-resident: If you haven’t been here long enough or don’t have strong ties to Canada, you’re a non-resident. You only need to report your Canadian income, like part-time job earnings or Canadian investments.
Knowing your residency status is key because it tells you what income to report and which credits you can claim. It can make filing your taxes easier and might even get you a good refund!
Tax filing made easy
The Canadian tax system is pretty straightforward once you have the right forms and documents. Here’s what you’ll need to get started:
- Social Insurance Number (SIN) or Individual Tax Number (ITN): This is your Canadian ID number and it’s required to file your taxes.
- T2202 form: This form is issued by your school and shows the tuition fees you’ve paid during the year.
- T4 or T4A: If you worked in Canada, your employer will give you a T4 form showing your income and any deductions. If you receive scholarships or bursaries, you’ll get a T4A form.
- Receipts for eligible expenses: Keep all receipts for things like textbooks or moving expenses. Trust me, every little bit helps!
Filing your taxes may seem intimidating, but in reality, it’s just about filling out a few forms and sending them off. If you can handle midterm exams, you’ve totally got this.
What you can claim as an international student
As an international student in Canada, there are several things you can claim on your tax return that could put some cash back in your pocket. Let’s break it down:
You can claim the tuition fees you’ve paid as a non-refundable tax credit. Even if you didn’t have Canadian income last year, you can carry these credits forward to future years or transfer them to a family member. Yes, your family can benefit from your education!
Paying off student loans? You can claim the interest you pay as a tax deduction. This helps reduce your taxable income, which means less tax to pay.
Remember, the more receipts and documents you keep, the more tax breaks you’ll be able to claim.
Filing taxes made easy with IGNITE
Filing your taxes doesn’t have to be stressful—IGNITE is here to make it easy! Starting Feb. 18, you can book an appointment at IGNITE’s Tax Clinic for free help with your taxes.
They’ll be available at the North campus KX student lounge, Lakeshore student centre at K building and Humber Downtown. For those at the downtown campus, walk-in appointments are available on March 12, March 26 and April 8.
The team at IGNITE will guide you through the process, helping you fill out forms, claim your eligible credits and make sure you don’t miss out on potential refunds.
Booking an appointment is easy—just visit the IGNITE website to schedule your time. Book your spot and let IGNITE help you through a stress-free tax season!
Filing your taxes may not be the most exciting part of your student life, but it’s definitely one of the most important. It gives you the chance to claim valuable credits, secure a refund and ensure your finances are in good shape for the future.
Plus, with IGNITE’s free tax clinic, you don’t have to figure it all out on your own. The team is ready to guide you through the entire process, making it as stress-free as possible.
It’s a small task that can have big rewards, helping you make the most of your time as a student in Canada!
Here’s to a smooth and rewarding tax season ahead!
Feature image courtesy of Amina Atar via Unsplash.
Curious about student expenses you can claim on taxes? Check out all the student expenses you can write off on your taxes!
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