Tax Tips and Information


Students may be eligible to withdraw funds for postsecondary education from a Registered Retirement Savings Plan (RRSP) for postsecondary education, without a tax penalty.  Please visit the Canada Revenue Agency website here for more information.

Employment Insurance

Students receiving Employment Insurance benefits (EI) may be eligible to continue to receive those benefits while attending college. Students must request permission from Service Canada to take full-time training. Requests can be made via the My Service Canada Account or directly with an agent on the phone. If you are a student who could benefit from this opportunity, we suggest requesting permission as early as possible. Please visit the Canada Revenue Agency website here for more information.

Canada Education Savings Grant

Saving for postsecondary education is important. The Canada Education Savings Grant provides a grant of up to $500 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 learn more!

Tax information for students regarding scholarships & bursaries

Scholarships, grants and bursaries provide financial relief to many students but it is important to note that the Canada Revenue Agency treats them as income. There is a basic scholarship exemption for the first $500 though and students may claim a larger scholarship exemption if they are enrolled in an educational program.  The College will issue a T4A at the end of February for the previous tax year, for scholarships, grants and bursaries that were funded through Loyalist College. Please see below for instructions on how to obtain your T4A from Loyalist College.

Tax Credits and Deductions for Students

College students may be eligible for a non-refundable tuition tax credit that can significantly reduce their tax owing. Even if students have no earned income in the tax year, 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. 

Students may also be eligible for the new Canada Training Credit. This is a refundable tax credit provided to students who meet a list of conditions.
Interest on a student loan may be deductible for tax purposes if the loan falls under an eligible program.
Students maybe eligible to claim a deduction for moving expenses if they relocate more than 40 kilometres to attend school and are enrolled as a full time student. These expenses can include travel, gas, meals, lodgings, shipping, car rental and mailing, among other costs.
Students having to pay child care expenses while studying, earning income or conducting research are eligible for deducting their child care expenses on their tax return.

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. Students may also be eligible for the Ontario Sales Tax Credit or related provincial payments.