You can withdraw funds for post-secondary education from a Registered Retirement Savings Plan (RRSP) for post-secondary education, without a tax penalty – up to $10,000 per calendar year, and $20,000 in total – as long as the withdrawal is repaid within a 10-year period.
Students receiving Employment Insurance benefits (EI) may be eligible to continue to receive those benefits while attending Loyalist; the benefit period may be extended if the College program lasts longer than the benefits. Some students may be able to receive additional assistance from EI for their College tuition; contact your counsellor at HRDC to discuss this option as early as possible. Even students who have received EI within the past three years may be eligible
College students (and their parents) are eligible for significant tax benefits (this includes a $400 per month deduction as well as tuition and fee credits). This total will provide a significant tax credit for either the student or, by transfer, to a spouse, parent or even a grandparent.
Part-time students (taking as few as 12 hours per month of post-secondary education for a minimum of three weeks) are now eligible for a tax credit for each month spent studying, in addition to their tuition costs.
Interest on a student loan is deductible for tax purposes. Individuals will be allowed to claim a federal tax credit on the interest portion of payments for federal and provincial student loans. This can save a significant amount on taxes.
Most banks offer a variety of student loan packages to assist students, either instead of, or in addition to government student loan programs. A typical program provides a line of credit that can be used as needed as opposed to a large, upfront loan.
Although many students do not file an income tax return because their income is below the taxable threshold level, they should be filing. Even if no tax is owed, students 19 years of age and older can claim the refundable HST credit. These payments are made four times per year directly to the student. The income of most young college students will allow them to receive the tax benefits. Most students will also be eligible for the Ontario sales tax credit.
Students can claim a deduction for moving expenses if they relocate more than 40 kilometres to attend school. This deduction can be claimed against any scholarship income as well as any employment income. In the summer when the student moves home, she or he is “moving to take a job,” thus all moving expenses are deductible. These expenses can include travel, gas, food, lodgings, shipping, car rental and mailing, among other costs, for up to two weeks around the time of moving. Remember to save all receipts. Contact the Canada Customs and Revenue Agency to obtain the booklet and form to use, or visit their website at: ccra-adrc.gc.ca.
The Canada Revenue Agency allows students to carry forward unused tuition and education fee deductions to a future year. Alternatively, unused tuition fees and education amounts of up to $5,000 may be transferred to a supporting spouse, parent, or grandparent.
For very low income students who attend college part time or who enrol in the College Access Program, the Ontario Special Bursary Plan can provide non-repayable sums of money to cover tuition fees, books, transportation and childcare.
The Canada Education Savings Grant provides a grant of up to $600 per year towards a Registered Educational Savings Plan (RESP) of a child up to age 18 based on a parent or student contribution of up to $2,500 per year. Talk to a financial planner to find out more about this great new option.
Sources: Canada Revenue Agency, Canada Student Loan, Ontario Student Assistance Program, University of Western Ontario, Loyalist Financial Aid, Loyalist Finance Staff. Updated January 2012.
Tax information for students regarding scholarships & bursaries
The full amount of scholarships or bursaries that you receive as a student, with respect to your enrolment in a program that entitles you to claim the education amount, are not taxable and are no longer reported as income on your tax return.
If you are not eligible for the education amount, report on line 130 of your income tax form only the part of the post-secondary scholarships or bursaries that is more than $500.
For further details please visit the Canada Revenue Agency website at cra-arc.gc.ca.
How to print your T2202A income tax receipt
T2202A income tax receipts can be printed from Banner. To access Banner, select the “Enter Secure Area” link from loyalistbanner.com and follow the steps outlined below. Current post-secondary students can access their T2202a tax receipts through the portal myloyalist.com.
Enter your User ID (student number) and PIN. The first time you access Banner your PIN is your birth date in the format YYMMDD. For example, if your birthday is October 20, 1985, your PIN would be 851020. Also, the first time you access Banner, you will be prompted to change your PIN and enter a security question and answer.
If you require your access information, or experience technical difficulties, please contact the Service Desk at 613-969-1913, ext 2420 or email firstname.lastname@example.org
Select the ‘Student Services’ link.
Select the ‘Accounts Receivable’ link.
Select the ‘Canadian Tax Forms’ link.
Select the ‘T2202A Tax Credit Form’ link.
The following screen will appear.
Select the year. You should use the option to ‘view’ your receipt before you print to ensure the information is accurate.
To print an official receipt, choose ‘Printable Version.’
If you have any questions or concerns, please leave a message on the T2202A hotline, listed below. Messages are checked daily, Monday through Friday.
613-969-1913 ext. 2187