Summer Job Tax TipsBrian Jang ON June 6, 2017
If You Read One Article about Summer Job Tax Tips This Year, Read This One
Getting a post-secondary education doesn’t come cheap. It’s one of life’s big expenses that many students have to be prepared for. Whether you are paying everything upfront or taking out a student loan, you’ll want to do all that you can to add some extra money into your bank account.
Now that school’s out, chances are you’d rather be spending your vacation at the beach or lounging around with your friends. But like most cash-strapped students, you’ll probably have to slog away at a summer job. If you want to stretch your summer dollars a little further, here is some handy advice and part-time job tax deductions to help you keep pace.
Do I have to file a tax return for a summer job?
Ok, let’s get this out of the way. In a perfect world, students wouldn’t have to deal with tax stuff until school is done. But, unfortunately there’s no special treatment for all you folks trying to pay for an education. So if you received any money from summer jobs, part-time jobs, bursaries, or grants, you are going to have to file a student tax return.
That said, full-time students can get a little bit of a tax break. There are a number of deductions you can take advantage of that will help ease your tax burden. For example, students can claim tuition, educational credits, moving expenses, student loan interest, public transit, textbooks, and ancillary costs.
Why not start your own summer business?
Getting a summer job doesn’t always mean having to work for an employer. If jobs are hard to come by or you have a great money-making idea, you can always go into business for yourself. Starting your own business is not only a smart way to make some extra cash over the school break, it can also take advantage of some nifty tax deductions for your summer job tax return.
When it comes to running a business, there are a wide variety of deductions you can claim. The Canadian Revenue Agency (CRA) will allow you to deduct several expenses, including business start-up costs, home office or workshop space, business licenses, office supplies, and business use of your vehicle.
Take advantage of the Tax-Free Savings Account
There is another tax break students can benefit from—the Tax-Free Savings Account. If you don’t need to spend your summer earnings right away, you might want to put your money into a TFSA. Any interest earned on your savings won’t be taxed.
Snagging a summer job will certainly help take some of those money woes off your shoulders. To make the most of your hard-earned summer cash, speak with a chartered professional accountant.
Need help figuring out your student job tax return? Contact us today!
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- What You Need to Know About Paying Taxes by Installments