ENGTAX 101

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ENGTAX 101
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Why should you pay taxes?

• Because we have to
• To avoid late fee/interest
• Claim a refund
• Apply for GST credit
• Carry forward/transfer unused tuition
• Report income for RRSPs

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Which tax package to use?

• Different Tax returns for provinces
• Use your usual province of residence
• If you dont have a home province anymore, then
  use the rule of thumb where did you live on
  December 31st?
• International income filed under Canadian tax
  forms and possibly International tax forms, check
  tax treaties to make sure you are not double
  counted!

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What do I need?

• SIN
• T4 slips, which show employment income and
  payroll
• Deductions
• T4A slips, which show scholarship and bursary
• income, or payments from a registered education
• savings plan
• T5 slips, which show investment income such as
• interest from bank accounts or from Canada
  Savings
• Bonds.
• Copies of any other required receipts/slips
• Keep your supporting documents for 6 years.

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When is it due?

• Generally, your return for the tax year has to be
  filed on or before April 30 of the following
  year. (not April 15th)
• Submit by mail, telephone, internet

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You can be taxed on the following

• salary, wages, commissions, bonuses, tips,
  gratuities and honoraria
• commission income
• research grant
• Interest and other investment income
• scholarships, fellowships, bursaries, study
  grants
• registered education savings plan income.
• You only get taxed for earnings greater than
  8,044 minus deductions

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Scholarship/Grant Exemption

• You are exempt from paying taxes on the greater
  of
• 500 or 3000 of the scholarship/bursary/grant
  you received

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Moving expenses

• You can deduct moving expenses from income if you
  are moving to work/attend university
• Moving expenses deducted from work proceeds (for
  work) and scholarships/grants (for school) ONLY

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Interest paid on your student loan

• You can claim an amount as tax credit only for
  interest you have not previously claimed. If you
  do not wish to claim these amounts on the return
  for the year they are paid, you can carry them
  forward and apply them on your return for any of
  the next five years.
• Therefore, dont claim student loan interest
  unless you have taxes to pay for that year!

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Tuition

• Claim your eligible tuition and education amounts
  for the year and any unused amounts carried
  forward from last 5 years (as tax credit)
• If you are a co-operative student you are
  considered a full-time student only during the
  months you attend the educational institution.
• Tuition tax credits are transferable to members
  of your family

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Eligible Fees (for tuition tax credit)

• admission fees
• Library/lab fees
• examination fees
• charges for a certificate, diploma, or degree
• WEEF (donation, not a tax credit)
• fees, such as athletic and health services fees
  (that everyone has to pay)

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Ineligible Fees

• students association fees
• medical care
• transportation and parking
• meals and lodging
• goods of lasting value that you will keep, such
  as a computer, microscope, uniform, or an
  academic gown
• initiation or entrance fees to a professional
  organization
• cost of books
• also, if not already declared as income
• fees paid or reimbursed by your or your parents
  employer
• fees paid by a federal, provincial, or
  territorial job training program
• fees paid (or eligible to be paid) under a
  federal program to help athletes

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Education amount

• Tax credit for each month you are enrolled in
  full or part-time studies
• You can claim a full-time education amount for
  each whole or part month that you were enrolled
  if
• you were enrolled full-time
• you were enrolled part-time and you can claim the
  disability amount

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GST credit

• To receive this credit, you have to apply for it,
  even if you received it last year.
• On page 1 of your return, check the Yes box in
  the GST/HST credit application area and enter
  your marital status in the Identification area.
• GST calculated based on net income you get 56
  and up.
• Approximate family income level where the client
  will no longer receive the GST credit 36,558

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Resources

• Canadian Revenue Agency
• http//www.cra-arc.gc.ca/menu-e.html
• Student Income Tax Guide
• http//www.cra-arc.gc.ca/E/pub/tg/p105/p105-04e.pd
  f
• Student Loan Interest Hotline
• 1-888-203-4305
• Ontario forms found at
• http//www.cra-arc.gc.ca/formspubs/t1general/ontar
  io-e.html
• Student deductions page
• http//www.cra-arc.gc.ca/tax/individual/segments/s
  tudents/deductions-e.html
• Presentation found at
• http//www.eng.uwaterloo.ca/j2kao/ENGTAX.ppt
• ASEC (Accounting WEEF) Tax Clinic
• SLC Great Hall 900am-400pm March 17th-18th