Should I fill my sons scholarship and university loan in my tax file?
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Under the forms of my tax return. there is a form call "Dependant's Information". My son has a scholarship and loan from Ontario Integrated Student Loans to go to the university. Should I fill both amount to the "Net Income" under the "Dependant's Information" of my tax file?
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Answer:
Are you claiming your son as an eligible dependent? The only time his income would be relevent for your taxes is if you are trying to claim him.as an eligible dependent. You don't pay taxes on his income. http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines300-350/305/qa4-e.html If you are hoping to claim his tuition expenses, then he will need to fill out his own T1, as you can't claim his tuition unless he doesn't need it. He doesn't have to transfer the deduction to you, by the way. Once he fills in his T1, you'll have the information you need to determine if his net income is too high for you to claim him. http://www.cra-arc.gc.ca/tax/individuals/segments/students/menu-e.html The loan isn't taxable for him, but the scholarship is. http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/reporting-income/lines101-170/130/scholarship-e.html
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Other answers
Provided your son is still in university, the federal / provincial government should be paying the interest on the student loan. The scholarship may be taxable. My scholarship was technically a "bursary" and the university gave me t-forms (I forget which ##) to file. Since my income was low enough, I didn't have to pay any taxes then. Finally your son should be claiming any income and expenses on his T1 return first. There is then an option to transfer those amounts to a parent, spouse or guardian.
CHARLES R
No. For one thing, neither a scholarship nor a loan is income. Secondly, your son's loan is his - the credits from interest paid on it belong to him. So do the credits for his tuition. If your son had income (other than his loan and scholarship), he has to file his own income tax return, even though he is your dependent. He will use his education tax credits to lower his tax payable to $0. Any excess unused credits can be transfered to you, or he can choose to carry them forward.
Diane
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