Why school still matters for your taxes after graduation

Why school still matters for your taxes after graduation

Hooray, you did it!! You’ve finished college or university and are now out there taking on the world!  And whether you've found a job in a field related to your education, or you are simply glad to have it over with and doing other things, your time at school is still important for your taxes over the next little while after grad.

First, you will likely finish school with unused tuition credits.  Even if you transferred the maximum amount each year to your parents (they probably helped pay your way, after all), people often still carry forward unused amounts with them into their after-school life.  It is important to make sure these unused credits are claimed, as they will reduce your taxable income and may trigger a refund of taxes you’ve paid through your payroll over the year.

Second, one of the downsides of graduating is that student loan repayments start.  The good news for your taxes is that the interest portion of your repayments creates a tax credit as well.  You should receive an annual statement about your student loan, which tells you how much interest you paid - make sure this gets included in your tax return!






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