Filing taxes might not be the most exciting task, but for Canadian post-secondary students, it could mean unlocking valuable credits and refunds that can add up to significant savings. In fact, 2025 could see up to $2 billion in tax refunds going back into the pockets of nearly two million students across the country. Here’s a breakdown of how this is possible and the tax credits and benefits you can take advantage of to save money or even get money back from the government.
Table of Contents
Why Should Post-Secondary Students File Their Taxes?
According to H&R Block Canada, filing your taxes as a student can lead to money back through tax credits, federal benefits, and other refunds. Even if you only worked part-time, received a scholarship, or didn’t earn any income at all, you can still access valuable credits and deductions. Last year, approximately 85% of students who filed their taxes received refunds, with the average refund amount reaching $1,550.
If you’re a student who paid tuition, received financial aid, or moved to attend school, you’re in luck. These factors can unlock credits that reduce the amount of taxes you owe, or even lead to significant refunds.
How Big Could the Refund Be?
With nearly two million Canadian students enrolled in post-secondary institutions, the tax refunds could reach a staggering total of $2 billion. This amount reflects the collective refunds due to eligible students across the country. Whether you’re attending college, university, or a technical school, filing your tax return can open the door to these refunds.
Even if you’re not working full-time, or working at all, don’t make the mistake of thinking you don’t qualify for a refund. There are a number of key tax credits specifically designed for students that could reduce your tax liability or even result in a payment from the government.
Key Tax Credits Available for Students
Here are the top tax credits students should be aware of when filing their returns in 2025:
- Tuition Tax Credit
The tuition tax credit allows you to claim the provincial or territorial fees you paid for your education, including tuition, textbooks, and even certain educational supplies. This can significantly reduce the taxes you owe. - Student Loan Interest Tax Credit
If you’ve been paying interest on your student loans, you can claim this credit to lower the amount of tax you owe. This is a great way for students to ease the burden of student loan debt while keeping more money in their pockets. - Moving Expenses Deduction
If you moved more than 40 kilometres to attend school full-time, you may be eligible to claim moving expenses. This deduction can cover costs such as travel expenses, packing, and storage. If your new home is closer to your school, you could reduce your taxable income significantly. - Disability Tax Credit
For students with disabilities, applying for and claiming the Disability Tax Credit could reduce your income tax bill. If you’re eligible, this credit is a great way to lower the taxes you pay and potentially receive a refund.
Don’t Miss Out on Government Payments
Failing to file your taxes could cause you to miss out on important government payments like the GST/HST credit and Canada Carbon Rebate.
- The GST/HST Credit could provide up to $519 annually if you’re a single student without children. This is an excellent way for students to receive extra support from the government to cover living expenses.
- The Canada Carbon Rebate is between $95 and $225 for students living in eligible provinces such as Alberta, Ontario, and Saskatchewan. This payment is issued as part of the federal government’s efforts to return carbon tax revenue to households.
Tax Filing Deadlines and Penalties
The deadline to file your tax return in Canada is April 30, 2025. If you miss this date, you could face a late-filing penalty, which can add up over time, reducing the refund you’re entitled to. Additionally, failing to file on time may delay your benefit payments, including those mentioned above.
Top 10 CRA Tax Credits and Deductions You Can Claim in 2025
11 Lesser-Known Canadian Tax Credits and Deductions You Can Claim This Year
Canadians Can Access Government Funds in March 2025
Canadians Can Access Government Funds in March 2025
8 Government Benefits Canadians Can Receive from the CRA This January
Conclusion: Don’t Leave Money on the Table
Even if you think you haven’t earned enough income to qualify for a refund, filing your tax return as a student in Canada is a step you shouldn’t skip. With a potential $2 billion in refunds heading back to students in 2025, the government is giving you a chance to save money or receive money back. Whether you’re dealing with tuition fees, student loans, or moving expenses, taking advantage of these credits and deductions could add up to a significant refund.
Filing your taxes isn’t just a requirement – it’s an opportunity. So, get your tax documents ready, file on time, and take advantage of the government benefits that are available to you!
One thought on “CRA May Distribute $2 Billion in Tax Refunds to Post-Secondary Students This Year”