Monday, May 14, 2012

Canadian Students Claim Used University Textbooks at Tax Time

Haven't you heard? Canadian students are eligible to claim income tax credits on new and used university textbooks.
Okay. Now we'll slow down, 'cause we don't want you to miss out on this.
You can save money and earn tax credits when you trade textbooks or buy and sell used textbooks online.
Really, it's as easy as it sounds. Trade used university textbooks directly with other students and save - why buy new? Then just claim your "textbook credits" on your yearly income tax form at the end of the year, file your taxes, kick back and relax. You'll get some money from the government if or when you have some income.
If only exams were that simple.
Used textbooks for tax credits
Since January 1st, 2007 Canadian students are eligible to claim tax credits on their textbooks without filing receipts. That's right - without receipts! Whether you buy your books used or new, you get the same credit (so why buy new?)
So, how does it work?
Well okay, here's the secret. Tax credits on Canadian textbooks are calculated based on the number of months you attend part-time or full-time studies.
Just visit your university student service center and ask for a copy of your T2202A:
o Part-time students: claim your number of study months x $20
o Full-time students: claim your number of study months x $65
This is as long as you are a part-time or full-time student who studies at a recognized post-secondary in Canada and you complete your courses.
If you think you'll end up owing taxes to the government, the deadline to submit your taxes is April, 30; otherwise, there is no deadline. But, obviously the sooner you complete and submit, the sooner you get money back. And often times there are free tax clinics on your campus to help file your tax - so ask around for them.
Need more information? Check out Revenue Canada's site and search for T2202A.
Trade Textbooks Online
Don't forget the best part about this Canadian tax credit program for university students.
You don't need your Canadian textbook receipts in order to claim your tax credit. So that means you're home free. Why purchase textbooks full price at the Campus bookstore when you can cut out the middle man and buy and sell used textbooks directly from other students?
I think you know the answer to that one.
Save money. Make money. We recommend you file these notes.
Important Note: We are not tax advisors, nor do we dream of being tax advisors. So talk to your accountant. A lawyer made us say this.