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Discussion Starter #1
Hello,

So I was filing my Tax returns for this year and noticed something weird -

After filing my T4s, my Tax Refund looked good in 3 digits.

But, after filing my Tuition fees (year 2014, Full Time, 4 months) for $6,000 my tax refund dropped by $300!

How?

Thanks in advance! :)
 

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Most likely, up until you told the computer you were a student, it would think that you were eligible for the worker's income tax benefit. This is a refundable tax credit directed at aid low income Canadian's who are trying to work full time. Students and anyone earning more then around $18,000 are not eligible for it.
 

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Discussion Starter #3
Most likely, up until you told the computer you were a student, it would think that you were eligible for the worker's income tax benefit. This is a refundable tax credit directed at aid low income Canadian's who are trying to work full time. Students and anyone earning more then around $18,000 are not eligible for it.
But my earnings are most definitely below $18,000, not even $10,000 for that matter. Does the refund deduction still apply? Thank you for your help!
 

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Optsyeagle is likely right. To qualify for the WITB, you have to have income from work AND not be a student. You are a student, so you don't qualify. You'll be better off getting an education and then earning enough money not to be eligible for the WITB anyway. Being poor is no fun.
 

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But my earnings are most definitely below $18,000, not even $10,000 for that matter. Does the refund deduction still apply? Thank you for your help!
Nisha, that tax credit was never directed towards students, so no, you are not eligible for it. It is basically an income boost to give incentive for low wage earners to continue to work and of course gain experience so that one day they can earn a higher wage. That is what it is for, not to subsidize a person going to school. Other credits have been given to you for that.

If you look closely at the tax payable lines (line 420, 428 and 435) on your tax return, I doubt Canada is asking much from you in the area of income taxes. I suspect your taxes payable have been reduced to zero or very close to it, due to your tuition expense deductions and education tax credits and so forth.

Later, after you graduate, hopefully you will be lucky enough to never qualify for such a tax credit, but if you do, you will understand what I mean. In any event, as a rule of thumb, you should not look at the refund (line 484) until you have completely finished entering all the relevant data. That is really the problem here. Trust me, there are lines and lines of tax credits, you and I both, do not and probably never will qualify for. It's best not to look at them.
 

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Another thing to consider is although your refund is lower this year, the life time benefit resulting from this year is probably higher. This is because you are carrying forward your tuition/education/textbook tax credits which you can use in the future.
 
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