I’m pretty sure I am paying tax in Korea, as we aren’t exempt from paying it, I have one paper that for sure says I paid last year, but none for the other years. It’s a little hard to obtain my first years tax filings because its in a different city and they don’t really speak English at my school. At any rate, I like most students didn’t use all my tax credit, does it ever expire, if I did have to pay tax in Canada at some point can I reduce my fees via my school credit or does it vanish after a time, I thought I remembered reading that you couldn’t use them after 4 years of leaving school…

I haven’t paid taxes in Canada since I’ve been here, cause really I wasn’t sure if I was suppose to or not. Also I didn’t want to pay them, if I was exempt. Your opinion would be useful. Should I file for the years I missed or wait till I eventually go back to Canada and sort it out and see if I was a non resident.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/324-eng.html

Bonnie

Any thoughts about whether I would be able to claim the interest payments from the get go as tax deductible under this situation?

I think the irrefutable way of insuring interest payments are tax deductible would be to first liquidate the $10,000 invested. Then use those proceeds to pay off the line of credit. Next, borrow $10,000 from the line of credit again and use the loan to repurchase your original investments. But all this just seems very wasteful to me.

as for my question posted above. the ontario provincial tuition and education amounts get converted into nova scotia credits at the federal rate.

1. Transit Credits – many students are given bus passes through their colleges/universities. These amounts can be claimed for credit per income tax act 118.02(1)

2. A credit is also available for ancillary fees and charges of up to $250 per year per ITA 118.5(3) so long as the fee is: paid to the institution and in respect of enrollment; but not if the fee is for a student association, for property aquired by the student, for services not ordinarily provided by schools offering post secondary courses, for construction/maintenance/renovation of buildings, unless the are owened and used by the school for courses/services, and lastly, not if the fee is not required to be paid by all other full-time/part-time students (i.e. no late fees).

ITA 118.5(3) Inclusion of ancillary fees and charges — For the purpose of this section, “fees for an individual’s tuition” includes ancillary fees and charges that are paid

(a) to an educational institution referred to in subparagraph (1)(a)(i), and

(b) in respect of the individual’s enrolment at the institution in a program at a post-secondary school level,

but does not include

(c) any fee or charge to the extent that it is levied in respect of

(i) a student association,

(ii) property to be acquired by students,

(iii) services not ordinarily provided at educational institutions in Canada that offer courses at a post-secondary school level,

(iv) the provision of financial assistance to students, except to the extent that, if the reference in paragraph 56(1)(n) to “$500″ were read as a reference to “nil”, the amount of the assistance would be required to be included in computing the income, and not be deductible in computing the taxable income, of the students to whom the assistance is provided, or

(v) the construction, renovation or maintenance of any building or facility, except to the extent that the building or facility is owned by the institution and used to provide

(A) courses at the post-secondary school level, or

(B) services for which, if fees or charges in respect of the services were required to be paid by all students of the institution, the fees or charges would be included because of this subsection in the fees for an individual’s tuition, and

(d) any fee or charge for a taxation year that, but for this paragraph, would be included because of this subsection in the fees for the individual’s tuition and that is not required to be paid by

(i) all of the institution’s full-time students, where the individual is a full-time student at the institution, and

(ii) all of the institution’s part-time students, where the individual is a part-time student at the institution,

to the extent that the total for the year of all such fees and charges paid in respect of the individual’s enrolment at the institution exceeds $250.

3. Also, while interest from a student line of credit is does not generate any credits, I found that the tax benefits of the credits were not offset by the increased benefits of a lower interest rate on a privately consolidated loan. (15% federal and 7% provincial (usually) x loan interest vs. loan x differences in interest rates). Don’t let the tax dog wag the business tale.

4. Also, students that are eligible for the disability tax credit are eligible for full-time student amounts, regardless of course load per ITA 118.6(3)

5. Finally, interest on loans made directly to the student by the educational institution where a student has been denied a loan by the provincial or federal agency does qualify. Napier, [2007] 2 C.T.C. 2377 (TCC).

Cheers,

Vancouver, CA