VANCOUVER, February 27, 2017 – Don’t miss out on your credits! As students, you want to make sure you get the most out of your education fees. To help you maximize the benefits of your 2016 tax return, the Chartered Professional Accountants of British Columbia (CPABC) has prepared some tips for post-secondary students:
1. Don’t forget your education expenses on your tax return.
Students enrolled at eligible Canadian post-secondary institutions might be entitled to a tax credit for tuition fees and ancillary fees paid for each calendar year. In addition to the tuition credit, students might be entitled to an education tax credit calculated on an education amount of $400 per month for each full-time attendance, or $120 per month for each part-time attendance. In B.C., the education amounts are $200 per month for full-time attendance and $60 per month for part-time attendance. However, note that the education and textbook tax credits will be eliminated for taxation years after 2016.
2. Carryforward or transfer your credits.
If you are able to reduce your taxes payable to zero without using all of your available tuition, education, and textbook credits, consider transferring some of these unused credits to a supporting spouse, parent, or grandparent. Up to a maximum of $5,000 per year can be transferred subject to certain restrictions. If you are unable to use your credits this year, they can be carried forward and claimed in a subsequent year.
3. Get credit for taking public transit.
If you are a public transit user, you may be eligible to claim a special tax credit for transit passes purchased in 2016 on your 2016 income tax return. Claims may be made on transit passes that provide unlimited use of public transit for at least 20 days in any 28-day period. A claim is also available for short-term passes provided that each pass provides at least 5 consecutive days of unlimited public transit use or at least 20 days in any 28-day period. Eligible cost-per-trip electronic payment cards may also qualify in 2016 provided they are used for at least 32 one-way trips during an uninterrupted period of no more than 31 days. Save those old transit passes. They could be worth 15 cents per dollar when you file your tax return.
Learn how to maximize your credits with CPABC’s RRSP and Tax Tips at www.rrspandtaxtips.com.
NOTE TO JOURNALISTS: Local CPAs are available for interview. Infographic is available for reprint.
Please credit Chartered Professional Accountants of British Columbia (CPABC) for use of the content and include the following disclaimer: Tax rules relating to these RRSP tips are complex. This is not intended as tax advice and you should not make tax decisions based solely on the information presented in these tips. You should seek the advice of a chartered professional accountant before implementing a tax plan or taking a tax filing position.
About CPA British Columbia
The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing, and regulatory body for almost 35,000 CPA members and 5,500 CPA students and candidates. CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy. CPAs are recognized internationally for bringing superior financial expertise, strategic thinking, business insight, and leadership to organizations.
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For more information or to arrange an interview, contact:
Vivian Tse, Public Affairs Specialist