canada student loan interest paid, do I get this money back on income tax??

Question

I know I can claim these papers from the last 5 yrs. It totals almost 2000.00. Do I get all this money back as a refund?? I have a friend that says she does, but she's not reliable, I've been checking everywhere on the 'net and I just don't know...I don't want to go to h r block and leave owing them money!

Answer 1

Interest paid on eligible student loans generate a tax credit in the year the interest was paid. You should have received a letter from the institution holding the loan telling you the interest paid in the year. On $2,000 the credits likely translate into between $350 and $400.

The claim is for the interest paid in the year though. You cannot simply add up the last 5 years worth and put it on a single tax return. You can file adjustments to your previous years tax returns to include the interest paid. If the interest credit isn't usable in the year it arises then it can be carried forward from 2001 onward. That's likely where the 5 years your friend is talking about comes from.

Cheers.

Answer 2

http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines300-350/319-e.html

Line 319 - Interest paid on your student loans

You may be eligible to claim most of the interest paid on your loan in 2006 or the preceding 5 years if you received it under:

the Canada Student Loans Act;
the Canada Student Financial Assistance Act; or
a similar provincial or territorial government laws for post-secondary education.

Only you can claim most of the interest paid on your student loans even though someone related to you may have paid it. Do not claim interest that you have already claimed. Amounts that you do not claim this year can be carried forward to any of the next five years.

You cannot claim interest paid on any other kind of loan, such as:

a personal loan or a line of credit;
a student loan that has been combined with another kind of loan; or
a student loan received from another country.

In addition, you cannot claim interest paid in respect of a judgment obtained after you failed to pay back a student loan.

Receipts - If you are filing a paper tax return, include your receipts for the amounts you claim. If you are filing electronically, keep all of your documents in case we ask to see them.

Common errors
Avoid getting a request letter, or a Notice of Reassessment from CRA by paying special attention to certain conditions. For more information see Common adjustments.

Completing your tax return
On line 319 of Schedule 1, enter the eligible amount of interest paid on a student loan.

Be sure to complete the tax and credit form for your province or territory of residence.

Forms and publications
General Income Tax and Benefit Guide
Students and Income Tax pamphlet (P105)

Hope this helps you.

Answer 3

Do you think you are in a socialist country..you got the money..pay it back and forget about getting it back...what kind of courses did you take? How do you look in an orange jump suit?