Student's Guide to Getting the Most Money Back This Tax Season

Student life is expensive! That’s why we’ve put together three [practical] ways to get the most money back this tax season. Take a read below!

#1 Hold on to your medical equipment receipts

Once you’re licensed and your practice is up and running, anytime you spend money on something that you’ll use in your business, you get to claim it as a deduction at tax time. 

What’s a deduction? Simply put - a refund. Meaning you’ll get a portion of the purchase price back when you file your taxes. Deductions mean money in your pocket. The more deductions you have, the more money in your pocket.

You may be wondering why we’re bringing this up now, since you haven’t starting practising.

Well, for some expenses, like the pricey medical equipment you’ve invested in while in school, you’re purchasing it before starting your practice. So most people assume the money spent on this is a lost cause (aka it can’t be deducted) and it’s not worth saving the receipts. 

Wrong! Keep your receipts. If you hold on to these receipts you’ll be able to claim a deduction in your first year of practice. There are many intricacies around how you claim these types of deductions, what can be claimed and what their value is, so make sure you talk to your accountant.

A good accountant who understands your business should ask you about these types of deductions prior to filing your first year taxes as a holistic practitioner so you’re able to maximize your return and get the money back you deserve. 

#2 Ensure you’ve claimed all the tuition credits you’re entitled to

First off – what’s a tuition credit? Tuition credits are a beautiful spring of abundance few understand but many benefit from. In the holistic field they’re a goldmine, and this is why… 

For every dollar you put toward your tuition you get to earn a dollar essentially tax free. So for people in the holistic field, many of whom have spent well over $100k on tuition, they’re able to earn their first $100k without paying any taxes. 

This is LUCRATIVE. But you may be asking, if this is a given, why should we even think about it until we’re earning money. 

When you file taxes as a student, your accountant should be using what we call your “tuition slips” (tuition tax forms) which say how much you’ve spent that year, to determine how many tuition credits you’re eligible for that year. 

The problem is, VERY often we see that the CRA decides it doesn’t have enough information about your tuition and wants to see additional proof.  When this happens they send you a letter asking for this proof, and if you hate paperwork as much as most students then you toss it to the side and never follow-up with them. 

When you don’t respond by their deadline, the CRA just removes your tuition credit for that year altogether. This leaves you missing out on the credit. Most of the time you don’t even know it’s happened. 

When we take on a new tax client we go through all your past returns, cross reference this with the years you were paying tuition, and ensure you’ve never missed out on any tuition credits you’re owed. 

#3 Check if you qualify for various lucrative tax credits

• Rent – In Ontario, you can get a credit based on the amount of rent you pay – including rent paid to most private colleges. Make sure you claim this!

• Climate Action Incentive payments – New this year, you get a refundable tax credit if you live in Saskatchewan, Manitoba, Ontario or New Brunswick. You can get up to $154 in Ontario – but only if you file a tax return.

• GST/HST credit – You could get up to $400 to offset the GST/HST you pay during the year. You get this credit automatically, but only if you file a return.