Claiming Student Loan Interest on the Tax Return

Claiming Student Loan Interest on the Tax Return

The Canada Revenue Agency understands that repaying figuratively speaking could be economically hard in many cases. To aid offset a few of that burden, the CRA delivers a deduction for qualifying student loan interest repayments.

Eligible Interest

You are allowed by the CRA to claim the attention you have got paid on lots of your post-secondary student education loans on your taxation statements. Nevertheless, you will find limitations in the kinds of loans that qualify:

  1. You simply can’t claim interest from unsecured loans or credit lines even although you utilized those monies to cover post-secondary training. Additionally, you might perhaps maybe not claim interest on student education loans gotten from international banks.
  2. You’ll just claim interest re payments on loans received beneath the Canada student education loans Act, money tree hours the Canada Student Financial Assistance Act, or comparable provincial or territorial programs.
  3. You cannot claim the interest paid as student loan interest if you combined any qualifying loans with non-qualifying loans. As an example, you cannot claim the interest as student loan interest on your tax return if you took out a home equity line of credit to pay for university, that doesn’t count as a qualifying loan, and.

Understanding Non-Refundable Tax Credits

Your education loan interest, along with the rest for the information you report on lines 300 to 395 of one’s tax return, earns that you tax credit that is non-refundable. Læs videre “Claiming Student Loan Interest on the Tax Return”