Time for The Man to take your cash
By Brendan Howe
It's tax time again but what many students don't know is that doing their taxes could put some money back into their pockets.
Jeff Katzin, an analyst in the corporate finance division at Deloitte & Touche, said it is very beneficial for students to fill out a tax form because of tax credits students can get and potential refunds. "If a 20-year-old student earns zero income and therefore pays no taxes and does not file a tax return because they're lazy or they don't know, they are missing out on $300," he said.
Katzin explained by filing a return a student is automatically eligible for up to $100 in the form of an Ontario sales tax credit and $200 as a result of a refund from paying the federal Goods and Services Tax. He said there were also a number of other ways which can help students pay less tax or none at all depending on how much money they make during the year.
Every person who files a tax form gets an initial credit of $6,456 but students also get to use their tuition and educational costs, some of the money they pay in rent, living and possibly moving expenses toward their taxes. Moving expenses can be deductions only if the student is receiving money for scholarships, Katzin said.
The most important thing is for the person doing the taxes to be knowledgeable, he said. "People who try to do their tax returns without knowing a lot are missing out on a lot of things."
Evan Cooperman, University Students' Council income tax commissioner, noted an important thing to remember is if a student does not fully use the credit they get for their tuition it will be carried over indefinitely and can be used later on in life. He agreed it is important to fill out a tax form before the April 30 deadline.
"You can get more money coming toward you, it saves you money in the future and it gets you on file with Revenue Canada," he said.
Once someone submits their first tax return the amount they can contribute to Registered Retirement Savings Plans starts being carried over. Katzin said this is important for the future when someone has a higher income level and is working full-time.
TAXING JOB. Fourth-year food-nutrition student Cindy Ghartey and Cheryl Williams, a second-year computer science student, did income taxes in the UCC yesterday.