Personal Finance

Being a student costs me $800 income tax refund? say wha?

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  • May 16th, 2011 11:45 am
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Jr. Member
May 31, 2008
125 posts
1 upvote
London

Being a student costs me $800 income tax refund? say wha?

So I'm going through doing my taxes with turbotax.. It's telling me I have a $864 dollar refund, then as soon as I enter my tuition credits (which I thought was supposed to help) it drops down to $18..

$18 is the amount of income tax I paid this year (i got my work not to take it off my paycheque near the beginning of the year because I knew I would not owe any in the end due to being a student) so in a way that makes sense... but it was still the amount I paid when I was going to get $800 back. the difference seems to be the Working Income Tax benefit, which is described as a tax credit, but I thought being a student was gonna do something for me tax-wise beyond costing me $800...
15 replies
Sr. Member
Nov 8, 2010
963 posts
214 upvotes
The Working Income Tax benefit is only available to low income people who are employed, and who do not attend school during the year. Students are obviously not eligible.


Your tuition credits can be used to lower your income tax to 0, but no lower. You can keep any unused tuition for future years, or you could transfer up to $5000 of it to a spouse or parent (or maybe others).
Deal Fanatic
User avatar
Jan 27, 2007
5116 posts
984 upvotes
T.
You'll use the tuition in future years. Being a student didn't cost you anything - it is that you are no ENTITLED to the the WITB, there's a big difference.
Member
May 12, 2008
412 posts
44 upvotes
You can't get back money that you didn't pay. You paid $18 dollars in tax, so that's what you get back. Save your tuition credits for a year where you paid more tax, and it will help you then.
Deal Fanatic
Jul 1, 2007
8569 posts
1763 upvotes
Isn't it a bit late to do your taxes? (unless you are a business or a dead person)
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Jr. Member
May 31, 2008
125 posts
1 upvote
London
cool cool. it's just really depressing the way turbotax brings you through that step! wanted to make sure I wasn't missing something.
Jr. Member
May 31, 2008
125 posts
1 upvote
London
Thalo wrote: Isn't it a bit late to do your taxes? (unless you are a business or a dead person)

there's no set deadline if you don't owe 'em anything. I like to wait till after school is over to worry bout it
Member
Jan 26, 2011
233 posts
14 upvotes
Coquitlam
dutchca wrote: You'll use the tuition in future years. Being a student didn't cost you anything - it is that you are no ENTITLED to the the WITB, there's a big difference.
I think most know the fact. It's the rational behind that which is not clear. Why being a student make you less entitled to something that you would otherwise do?
Deal Expert
Mar 25, 2005
22706 posts
3697 upvotes
hoveran wrote: I think most know the fact. It's the rational behind that which is not clear. Why being a student make you less entitled to something that you would otherwise do?

Because you're in school and not working.
Deal Addict
Dec 28, 2006
2497 posts
138 upvotes
Saskatoon
hoveran wrote: I think most know the fact. It's the rational behind that which is not clear. Why being a student make you less entitled to something that you would otherwise do?


Because Parliament said so.


Budget 2007:
Helping People Over the Welfare Wall

Canadian social assistance programs are designed to help people who are out of work, but they can also have unintended effects. For example, for a single mother struggling to get by, getting a job can mean higher taxes and reduced benefits for things like drug and dental coverage. This is often referred to as the "welfare wall."

Budget 2007 helps people over the welfare wall and into the dignity and independence that comes with a job.

A new $550-million-per-year Working Income Tax Benefit (WITB) will serve as an important first step to help people over the welfare wall and on to a better, more prosperous life for themselves and their families.

The WITB will provide up to $500 per year for individuals and $1,000 for families to reward and strengthen incentives to work. More than 1.2 million low-income Canadians will benefit.


http://www.cra-arc.gc.ca/bnfts/wtb/fq_q ... ng.html#q2

You are not eligible for the WITB in 2010 if:

•You do not have an eligible dependant and are enrolled as a full-time student at a designated educational institution for more than 13 weeks in 2010;
•You are confined to a prison or similar institution for a period of 90 days or more in 2010; or
•You do not have to pay tax in Canada because you are an officer or servant of another country, such as a diplomat, or a family member or employee of such person.
Conquistador wrote: One other thing you should know for future reference. If it is on the subject of taxes, listen to ghostryder. He knows his stuff.
Deal Addict
Mar 27, 2011
1210 posts
89 upvotes
Nowhere
^ Thank you. This is the third or forth thread with students getting upset that they don't get the WTIB which is clearly for those who are working and of low income and does not apply to those in school for more than 13 weeks of the year.
Banned
Apr 20, 2011
87 posts
1 upvote
ontario
It does suck, but yeah students aren't entitled. I qualified for it I wasn't a student this year but my wife didn't. Kinda sucked seeing the 800 dropped after completing her portion of the tax return. But whatcu gonna do?
Sr. Member
Nov 8, 2010
963 posts
214 upvotes
earnings wrote: It does suck, but yeah students aren't entitled.
I'll make you a deal.

I'll convince the government to give it to low income students who are also working. In return you agree to pay the full cost of your education and not rely on government subsidizing educational institutions, providing students with low cost loans or free money in the form of bursaries.

Sound fair?
Banned
Apr 20, 2011
87 posts
1 upvote
ontario
FlyingOctopus wrote: I'll make you a deal.

I'll convince the government to give it to low income students who are also working. In return you agree to pay the full cost of your education and not rely on government subsidizing educational institutions, providing students with low cost loans or free money in the form of bursaries.

Sound fair?

Did you hear me complaining? I'll make you a deal, make me one when I ask for one.

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