The Underground’s Beginner Guide to Filing Taxes as a Student

Students are no strangers to credits, but what about taxes? The Underground has put together the beginner guide to filing your taxes in-between assignments with advice from a CRA representative.

It’s that time of the year again. After surviving the madness of the midterms, the struggle continues for students as the deadline to declare the 2022 personal income tax is fast approaching. As much as it could feel burdensome and tedious, doing your taxes can also become a—personally, much needed—relief from financial stress.

With proper guidance—and some patience—filing taxes should be as easy as spending your remaining TBucks on Timmies. With advice from a staffer at the Canada Revenue Agency, The Underground is pleased to present you the ultimate and (hopefully) long-awaited personal tax filing guide, so you can make the most out of your taxes and, possibly, get at least some of that juicy tuition money back into your pockets (is that even possible?)

Photo via Pinterest

What is the personal income tax (T1)?  

It’s part of the money collected by the government of Canada, and it’s used to pay for different services and operations such as “infrastructure, healthcare, education, and so on,” according to Paul Murphy, a senior communications advisor at the CRA. Tax collection is split federally and provincially, and individuals who earn money in Canada are required to declare the federal tax return and provincial taxes (yes, two separate documents).

What is taxable?

Any profit earned through work is taxable and should be listed when completing a tax form. Once you’re given a pay stub, for instance, you will notice that there are some deductions from your paycheck. This money goes to funds such as the Canada Pension Plan (CPP) contributions. While you won’t see this money until retirement, completing a tax form is important for building a strong credit profile. Scholarships and fellowships are exempted from tax. However, honoraria students receive when working for a club or academic department may need to be reported on the tax return. 

Who has to file a tax return?

If you owe money, you have to file a tax return. However, Murphy recommends filing a tax return even if you don’t have a payable balance. “This is because [you] may be entitled to various benefits and credits that are tied to the filing of the tax return,” he added. The deadline to file the 2022 tax return is April 30th, yet submissions are still accepted on May 1st since the 30th is a Sunday. 

While students are not exempt from declaring taxes, this may not be the case for everyone. Murphy explains that it’s essential for residents of Canada to file a tax return so that they don’t miss out on potential benefits. International students “may not be required to file a return” in the country, as they’re subject to their residency status there. However, if you’re an international student doing a work-study position or work anywhere else, you may be required to pay the personal income tax.

Photo via Pinterest

What benefits are available for students?

Tax packages change each year, sometimes adding new forms or replacing old ones. For instance, some forms relate to the general and harmonized sales tax (the famous GST/HST) or the Ontario Trillium Benefit (which helps pay for energy, sales and property expenses). 

For students, there are a few benefits that are worth a look at in the 2022 package. Some good examples are the credit to tuition, the Canada Housing Benefit (roughly $500 in credit), and even a staycation tax credit which students could see a refund for if they travelled and paid for a hotel or Airbnb in Ontario. On the tax credit available for tuition, Murphy added that “if you don’t need to use that credit right away, you can carry it forward and apply it to future taxes.”

How to file taxes?

If you want to work in Canada or already do, you may know about the Social Insurance Number (SIN). Nine digits for personal use, and you may already have one. If you’re Canadian, your parents likely registered you to have a SIN as a newborn or at a young age. If you’re an international student or simply don’t have a SIN yet, you must apply to get one. Regardless if it’s online, by mail, or in person, applying for the SIN has no cost. 

Photo by Rodrigo Huerta Aguirre // THE UNDERGROUND

Everybody employed in Canada and paid for it receives a T4 slip, which outlines the pay and deductions to it. When you’re filing your taxes, get all your documents, such as the T4 slips, tuition receipts, or any other receipts to obtain benefits and credits. 

The CRA recommends filing online since it’s a “fast and efficient” method. You can get a quick assessment and a refund “typically” in eight business days. Besides, paper applications are lengthy.

If this is your first time doing taxes (or if you get lost in the process), I highly recommend checking out “Learn about your taxes,” a CRA-designed course for “developing and understanding” the tax system in Canada. You can choose to start from zero, pick an individual lesson, and even take a quiz to test your tax knowledge. “There’s a wealth of detail in the course,” said Murphy. You are more than welcome to refer to this guide if this is your first, second, or tenth time filing your taxes. However, it is always best to speak with either the CRA or a certified professional agency. Also, the SCSU hosts free tax clinics to help you file your taxes, so you might as well check them out. If you are unsure about what to declare or not, you can ask CRA’s individual inquiries service at (800) 959-8281.