BS - Sunday, December 2, 1984 - North Shore News

Go to school and

F THERE’S one thing a student has to learn,
it’s how to handle a tax form.

By LISA SMEDMAN

Because most. students
work only at temporary or
part-time jobs, and because
they qualify for special
deductions, they can usually
receive a refund of any taxes
paid.

If you’re a student, and
you paid taxes on money
earned in 1984, what you
want to do tis reduce your tax-
able income (how much
money you owe taxes on) by
as much as possible. The
more you reduce it, the
higher the refund you can
qualify for.

First, you must reduce
your net income (how much
money you made in 1984
after paying taxes and other
deductible expenses).

To start, deduct any tui-
tion fees that exceed $100
which were paid for a course
at a Canadian post-secondary
insuitution, even if you were
not the one who paid them.
(Exceptions include fees paid
for by your employer or your
parents employer. “These
must be included as part of
your and your parents’ in-
come to be deductible.

You can also deduct any
tuition fees exceeding $100
paid to a school outside of
Canada, providing you were
enrolled in a full-tume, degree
course for a minimum of 13
consecutive weeks

(lf you paid tuition in
American funds, you. can
find out the appropriate ex
change rate to use by calling a
district taxation office Rates

are calculated both by the
month and by a yearty
average)

Tuition tees are normally
claimed by the calendar year
That 1s, only that portion of
yout tumion that apphes to
courses taken in 19K4 as
claimed) The balance 1s saved
to be clarmed in 198%

HIGH INCOME

But if you had a high in-
come this year, you might
wamt to claim = an_ entire
academic year’s worth of tui-
tion fees at once. If you claim
by the academic year, you
can deduct all fees paid to
cover courses running from
September, 1984 to August,
1985. (Remember that these
fees will not be deductible in
1985).

Another trick for reducing
net income involves deduc-
ting moving expenses. These
can be claimed to a move that
took you 40 km. (25 miles)
closer to work.

For example, if you moved
away from home to work last
summer, you can deduct
moving expenses from any
money made in your new
location in 1984. You can
also deduct moving expenses
incurred when you moved
back to resume studies after
completing this work, or can
deduct expenses from a move
to a new location to begin

school, from any award
money received (You can
not, however, deduct ex-

penses from a move to school
from anything but award in-
come and research grants).
Moving expenses are
especially useful for students
enrolled in co-op courses,
which involve alternating
semesters of work and study

MOVING ON

Allowable
penses include actual
amounts paid for: travel;
meals and lodging while en
route, transport and in

moving e¢x-

transit storage of household’

goods, moving insurance, the
cost of cancelling a lease; and

up to 15 days’ temporary
room and board ato a new
location (Job bunting and

house hunting expeditions,
however, are not clammable)

_ Are you paying too ©
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Keep all your receipts, but
don’t mail them in.

Remember that you will
have to include all scholar-
ships, bursaries, fellowships
and other awards as income.
First, however, be sure to
deduct $500 from the total
amount awarded in 1984.
(Research grants count as in-
come, but are not subject to
the $500 deductible).

And if your award is given
in installments, claim only
what you actually received in
1984. For example, if you
were awarded an $800 bur-
sary, but received $400 in
September, 1984, and are to
receive $400 in January,
1985, each of these amounts
is under the $500 deductible
for the year, although the
total amount would not be.
What counts ts the actual
date the cheque is given to
you.

Once your net income 1s as
low as you can get Wl, Start
reducing your taxable

income.

Start by deducting $50 for
each month or portion of a
month that you were atten-
ding school full-trme in 1984.
You must have been enrolled
for at least three consecutive
weeks with a minimum of 10
hours’ scheduled class time
per week (including lectures,
labs and practicums). The
T2202 or T2202A form you
receive from the school will
tell you what months you can
claim.

As soon as your taxable in-
come is down to zero, you
can pass on al] or part of the
$50 per month deductible to
a spouse, parent, or *‘suppor-
ung relative’ (ie: a grand-
parent, brother, or sister).

Anyone who claims you as
a dependant, or who would
do so if your net income was
lower, 1s eligible. And you
can be claimed as a depen-
dant by either your relatives
or spouse even if you only
live with them for a fraction
of the year. (There is no
minimum time specified).

DEC. 5
WOMEN

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