Posted on 02 September 2013.
Ottawa, August 27, 2013 |www.GovernmentGrantsCanada.ca |
Back-to-School Tax Credit 2013
The Honourable Jim Flaherty, Minister of Finance, and the Honourable Kerry-Lynne D. Findlay, Minister of National Revenue, marked the start of the back-to-school season by highlighting tax relief that is helping Canadian families save more of their hard-earned money.
“As students head back to school this Fall, families are again facing the costs of textbooks, bus passes and extracurricular activities, which is why our Government offers tax relief to help families save more of their hard-earned money,” said Minister Flaherty.
“Our Government is pleased to help Canadian families with tax breaks to help them stretch their dollars further as they gear up for the return to school,” said Minister Findlay. “The tax relief introduced by our Government is saving the average Canadian family more than $3,200 a year in taxes.”
Examples of this tax relief include:
- Children’s Fitness Tax Credit: Parents may claim a 15% non-refundable tax credit on an amount up to $500 for the feespaid relating to the cost of registering their child in a prescribed program of physical fitness activity.
- Children’s Arts Tax Credit: Parents may claim a 15% non-refundable tax credit on an amount up to $500 for the fees paid relating to the cost of registering their child in a prescribed program of artistic, cultural, recreational or developmental activity.
- Public Transit Tax Credit: Provides a 15% non-refundable tax credit on the cost of monthly public transit passes, and passes of longer duration, or electronic fare cards and weekly passes when used on an ongoing basis, for travel within Canada on public transit.
- Tuition, Education and Textbook Tax Credits: Provide a 15% non-refundable tax credit on amounts paid for tuition and enrolment in post-secondary educational programs. Tax relief is also available for apprentices and other workers in regulated occupations who must pay to complete certification examinations.
- Tax Exemption for Scholarships, Fellowships and Bursaries: Provides that certain post-secondary scholarships, fellowships and bursaries received in connection with a student’s enrolment in a program that qualifies for the Education Tax Credit may be fully or partially excluded from income. Elementary and secondary school scholarships and bursaries are not taxable.
- Student Loan Interest Tax Credit: Provides a 15% non-refundable tax credit on interest paid on loans for post-secondary education received under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or a similar provincial or territorial government law.
- Student Loan Interest Tax Credit: Provides incentives to save for a child’s education on a tax-assisted basis. There is no annual limit for contributions to RESPs, and the lifetime limit on the amounts that can be contributed to all RESPs for a beneficiary is $50,000.
Alberta and Canada Grants & Loans for Students
may be of assistance:
• Alberta Maintenance Grant — for student aid recipients with small children.
• Alberta Part-time Grant — to assist part-time students.
• Alberta Completion Assistance Grant — to assist students completing their unfinished programs.
• Canada Student Grant for low and middle income students.
• Canada Student Grant for students with permanent disabilities.
• Canada Student for students with dependents
for further information.