Claiming Student Loan Interest on the Tax Return

Claiming Student Loan Interest on the Tax Return

The Canada income Agency understands that repaying student education loans may money tree bellevue wa be economically hard in some instances. To aid offset several of that burden, the CRA supplies a deduction for qualifying student loan interest repayments.

Eligible Interest

You are allowed by the CRA to claim the attention you’ve got compensated on lots of your post-secondary figuratively speaking on your taxation statements. But, you can find restrictions in the forms of loans that qualify:

  1. You can not claim interest from unsecured loans or personal lines of credit even although you utilized those monies to fund post-secondary training. also, you may not claim interest on figuratively speaking received from international banking institutions.
  2. You might just claim interest re payments on loans gotten beneath the Canada student education loans Act, the Canada Student Financial Assistance Act, or similar 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. For instance, in the event that you took down a property equity credit line to fund university, that doesn’t count as a qualifying loan, and you also cannot claim the attention as education loan interest on the taxation return.

Understanding Non-Refundable Tax Credits

Your education loan interest, along with the rest associated with the information you report on lines 300 to 395 of the income tax return, earns that you non-refundable taxation credit. Continue reading “Claiming Student Loan Interest on the Tax Return”