2016-12-09 00:00:00TaxesEnglishLearn how to deduct the interest paid on student loans, which loans are eligible, and when to claim the deduction.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/Frustrated-Man-Checking-Student-Emails.jpghttps://quickbooks.intuit.com/ca/resources/taxes/accounting-tips-deducting-student-loan-interest-payments/Accounting Tips: Deducting Student Loan Interest Payments

Accounting Tips: Deducting Student Loan Interest Payments

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If you are a student and you, or someone related to you, paid interest on a student loan, you may be entitled to a tax deduction. The loan must be from an official government program , either federal or provincial. For example, loans made under the Canada Student Loans Act are eligible.

Only the student may claim the deduction. In other words, if your parents paid the loan for you, you may still claim the interest deduction, but they cannot.

If you do not have sufficient income to justify claiming the deduction, keep your documentation because the deduction for interest on student loans can be carried forward to future years.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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