Quick Answer
Most Canadian students are entitled to a significant refund and should always file — even with no income. The tuition tax credit, textbook amounts, and education credits are worth thousands over a degree. Plus, filing establishes your GST/HST credit eligibility, which can put $500+ per year in your pocket.
Should Students Even File?
Yes — absolutely. Even if you had no income in 2025, filing your return:
- Establishes eligibility for the GST/HST credit (quarterly payments up to $519/year)
- Accumulates unused tuition credits that you can carry forward to higher-income years
- Allows you to transfer up to $5,000 in unused tuition to a parent or grandparent
- Creates RRSP contribution room based on earned income
- Opens eligibility for provincial benefits like the Ontario Trillium Benefit
The Tuition Tax Credit
The tuition tax credit is the biggest tax break for students. It is worth 15% federally (plus a provincial credit) on all eligible tuition paid to a qualifying Canadian educational institution. Your school sends you a T2202 slip in February showing your eligible tuition amounts.
For example: if you paid $8,000 in tuition in 2025, you get a federal credit of $1,200 (15% × $8,000) plus a provincial credit of roughly $600–$800 depending on your province. That is $1,800–$2,000 directly off your tax bill.
Transferring Tuition Credits to Parents
If you cannot use your full tuition credit yourself (because your income is too low to generate tax), you can transfer up to $5,000 of unused credits to a parent, grandparent, spouse, or common-law partner. The transfer must be designated on your return before claiming any carry-forward. This can reduce your parent's tax bill significantly.
Carry-Forward Credits
Any tuition credits that you cannot use this year and do not transfer to a parent are automatically carried forward indefinitely on your CRA account. When you graduate and start earning a higher income, these carried-forward credits offset your tax — sometimes eliminating it entirely for the first year or two of full employment.
Student Income That Must Be Reported
- Part-time and summer jobs — T4 slips from every employer
- Scholarships and bursaries — Only amounts exceeding your tuition are taxable
- Research grants — Generally taxable
- OSAP or student loans — Repayments are NOT deductible; principal is never taxable
- RESP withdrawals (Educational Assistance Payments) — Are taxable income to the student
- Tips and cash income — Must be reported even without a slip
Moving Expenses for Students
If you moved at least 40 kilometres closer to school (or to a job after graduation), you may deduct your moving expenses. Eligible expenses include transportation, storage, travel, and up to 15 days of temporary accommodation. The deduction can only offset income earned at the new location.
Student Loan Interest Credit
Interest paid on qualifying student loans (Canada Student Loans, Ontario Student Assistance Program) generates a 15% federal tax credit. You do not need to claim it in the year paid — you can carry it forward up to 5 years and claim it when you have more income and a higher tax bill.
What Documents Do Students Need?
- T2202 — Tuition and Enrolment Certificate from your school (usually available in your student portal in February)
- T4 slips — From every employer during the year
- T4A slips — Scholarships, bursaries, RESP withdrawals
- SIN — Required to file any tax return in Canada
- Previous year's Notice of Assessment — Shows your carried-forward tuition credits