Be sure to keep these tips in mind for your first return
If you haven’t already, be sure to sign up for direct deposit in your CRA account. With direct deposit, any tax refund you’re owed will be automatically deposited into your bank account.Tuition is the largest expense for most students. Fortunately, the amount you pay toward your tuition can be claimed as a non-refundable tax credit. What this means is that if your tuition is more than any taxes you owe, the credit can reduce your overall tax burden.
When filing your taxes, any leftover tax credit can be carried over to the next year. Alternatively, you can transfer up to $5,000 of the tax credit to your parents or grandparents, minus the amount you’ve used. This can be highly beneficial as students are typically in a low tax bracket, so they don’t owe much taxes if any at all. By transferring the tax credit to a parent, they can reduce their taxes owed.
For the 2021 tax year, the basic non-refundable tax credit, also known as the personal amount for federal taxes, was $13,808. Each province and territory also has a personal amount that gets added to the federal amount. These amounts provide a base income level that isn’t taxable.Article content The tax software will help walk you through the tax filing process. Most software will even search for any eligible credits that you may qualify for and automatically apply them to your tax return.
Residents of Alberta, Saskatchewan, Manitoba, and Ontario may be eligible for the Climate Action Incentive , which is a quarterly payment.