It’s important to know how to do your taxes, even as a student.
With tax season officially underway, the Canada Revenue Agency (CRA) is encouraging students to file their returns as early as possible to ensure a smooth process and quick refunds. In an interview with The Brock Press, Daria Askerko, a T1 Spokesperson at the CRA, outlined key deadlines, changes and new services available for the 2024 tax season.
Key Deadlines and Filing Options
The deadline to file and pay taxes for the 2024 tax year is April 30. Self-employed individuals and their spouses or common-law partners have until June 15 to file their returns, but any payments owed must still be made by April 30.
“Filing online is the simplest way to ensure your return is processed quickly,” said Askerko. Last year, 93 percent of Canadians filed online, and those who opted for direct deposit received refunds in as little as eight business days. By contrast, paper returns can take up to eight weeks to process. The CRA also uses NETFILE software to facilitate online submissions, most of which is free.
New for 2024: Expanded Benefits and Enhanced Digital Services
This year’s tax season comes with several updates aimed at making filing easier and increasing access to benefits:
- Charitable Donation Extensions: Individuals can now claim eligible amounts for certain gifts made to qualified grantees.
- Easier Access to My Account: Canadians no longer need to wait up to 10 business days for an activation code; they can now verify their identity using government-issued identification and gain instant access.
- Live Chat with CRA Agents: Taxpayers can now speak with a live CRA agent through the My Account chat function for real-time assistance.
- New Reporting Requirements for Gig Workers: Those earning income through digital platforms, such as selling goods or providing services, must now track and report their earnings accurately.
- Volunteer Firefighter and Search & Rescue Credit Increase: The eligible tax credit amount has doubled from $3,000 to $6,000 for individuals providing at least 200 hours of combined volunteer services.
Tax Tips for Students
Students should ensure they have all necessary tax slips, including the T2202 Tuition and Enrolment Certificate, which details eligible tuition amounts for tax credit claims. Even if they are not currently employed, Askerko advised students to track tuition fees so they can apply unused credits in future years when they have taxable income: “This will often get you a nice, sometimes substantial refund.”
The P105 Guide for Students and Income Tax provides useful information on filing your 2024 tax return.
Other student-related tax benefits include:
- Tuition Tax Credit: This credit reduces the amount of taxes owed by deducting eligible tuition fees.
- Student Loan Interest Deduction: A non-refundable tax credit is available for those paying interest on government-issued student loans.
- Moving Expenses Deduction: Students who moved at least 40 kilometres closer to their educational institution may qualify for deductions on moving costs.
Protecting Against Fraud
The CRA is also warning taxpayers to remain vigilant against tax scams: “The CRA will never use aggressive language, demand immediate payment or threaten arrest,” said Askerko. Additionally, the CRA does not accept payment via credit cards, gift cards or cryptocurrency.
To avoid falling victim to scams, taxpayers should verify CRA communications through their secure My Account portal. Taxpayers should ignore suspicious emails or texts requesting personal information and report any suspected fraud to local authorities.
Support for Low-Income Taxpayers
For those in need of assistance, the Community Volunteer Income Tax Program (CVITP) offers free tax-filing help for eligible individuals, including modest-income students. Additionally, the CRA’s new ReFile system allows taxpayers to correct errors on their submitted returns without hassle.
Even individuals with no income should file a tax return to remain eligible for benefits and credits like the Canada Carbon Rebate (formerly the Climate Action Incentive Payment), which helps offset federal pollution pricing.
Daria Askerko emphasized the usefulness of My Account and encouraged all students to sign up today.
For more information on filing taxes, taxpayers are encouraged to visit the CRA’s official website or use the My Account portal for personalized tax details and support.