UW AFSA Tax Clinic

1. Check your work.

2. Double check your work!

3. TRIPLE check your work!!

4. FOR THE LOVE OF ALL THAT IS GOOD IN THE WORLD, CHECK! YOUR! WORK!

5. Do NOT forget the On-Ben Application. This is often all the money that a client will walk away with consider the type of clients the clinic has.

6. Do NOT assume anything. This is a learning experience for you, and it is perfectly acceptable for you to ask questions, and it is expected. You won't be judged for it. You will be judged if you decide to make up facts, lie, or assume facts. Don't assume anything. It just makes a fool out of you and me, but mostly you.

7. I do NOT tolerate ANY harassment at our tax clinic at all. Especially towards our volunteers. If you are ever put into a compromising situation, or otherwise made uncomfortable, please notify me immediately. I have called security in the past when necessary, and I will not hesitate to do so again. I only ask that you treat clients and your fellow volunteers with the same respect. You can be mean to me all your want though, I have thick skin.

8. Please use the control sheet. If anything has been checked off, make sure you ask about it.

9. We receive a lot of international students at the clinic, so if they're an international student, ask what year they came to Canada. If the year of entry is the year you're filing a tax return for, please remember to fill out the Immigrant form.

10. CHECK YOUR WORK!

What is the GST/HST Credit?

Official answer: The GST/HST credit is a credit that is paid to low/middle income families every quarter. It is supposed to represent amounts paid for GST/HST paid for basic living in Ontario. 

Sassy Answer:You're receiving the credit because you're poor. Government of Ontario says let's make life easier for you and refund you the money you paid for basic living in Ontario.

What is the Ontario Trillium Benefit?

Official answer: The Ontario Trillium Benefit (OTB) a credit that is paid to low/middle income families every month. It represents 3 credits in one, the Ontario Energy and Property Tax credit, the Northern Ontario Energy Credit, and the Ontario sales tax credit. Most people who pay either property tax or rent are eligible for the OTB. This credit is supposed to represent amounts paid for GST/HST on energy. 

Sassy Answer: You're receiving the credit because you are poor, and you paid for rent/property taxes. Goverment of Ontario says let's make life easier for you and give you some money back.

What is the Canada Carbon Rebate?

Canada mandated that a carbon tax is to be charged on corporations, but some provinces did not implement a carbon tax, this would be Alberta, Nova Scotia, Manitoba, Ontario, New Brunswick, P.E.I, Newfoundland and Labrador, and Saskatchewan. Consequently, Canada charges it directly, and redistributes the collections to individuals directly, so individuals living in these provinces receive a quarterly cheque.

Edit: March 15, 2025, CRA added new guidance as the CCR will begin it's sunset clause. The last payment date of the CCR is April 2025. 

https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-carbon-rebate.html

How do I apply for these credits?

You automatically qualify for these credits if you're a low income resident of Ontario, but there's no harm in applying anyways - the worst that will happen is that your tax software will say you don't qualify.

In your tax software, go to the ON-BEN form, and select "Applying for the Ontario Energy and Property Tax Credit". If you live in Algoma, Cochrane, Kenora, Manitoulin, Nipissing, Parry Sound, Rainy River, Sudbury, Thunder Bay, or Timiskaming, you also qualify for the Northern Ontario Energy Credit.

You MUST fill out your rental information, including total property tax or rent paid, and declaration of your principal residence. Note that living on campus is DIFFERENT from renting, as student housing is partially subsidized by the government, and a separate box should be selected.

I've done all of this but my software says I'm not getting anything!

There are three possible outcomes.

1) You did your tax return wrong. After triple checking your work, and ensuring all required items have been filled out, move on to 2.

2) You will not be turning 18 at the time of the payment. The payments will only be paid to those who have reached the age of majority at the time of payment.

3) You earned too much income, and you are no longer considered a low-income resident.

I'm being asked about the "Welcome to Canada" benefit, what is that?

You will hear many international students ask about a "Welcome to Canada" benefit - particularly international students from India where this was popularized.

Bottom line: The "Welcome to Canada" benefit does not exist. An accountant from Halton Hills came up with a marketing ploy in order to generate more business from international students/newcomers to Canada. Unfortunately, he failed to advise his clients that they were actually filing tax returns.

Unfortunately for us (and I guess fortunately for him) this ploy was a grand success, and this phrasing of the "Welcome to Canada" Benefit perpetuated for years through word of mouth and online forums. We were confused for YEARS, not understanding what clients were asking for, as we had never heard of this benefit before, nor did any other accountant we asked.

FINALLY we found this article which explained everything. The "Welcome to Canada" Benefit is just the GST/HST Credit and Ontario Trillium Benefit. They get this automatically when they submit the RC151 and T1. There is no separate benefit.

My client says they've deposited $10,000 in a GIC and they don't have a T5 for interest!

I consulted with my people, and we did our research. The application fee for this program is about $100-$200 dollars. The interest is around ~$50 at most. You can exclude/ignore this amount, there's no T5 to supplement and the cost to earn this income is greater than the actual income. International students need to prove they have sufficient funds to support their education in Canada. Worst case scenario is that when assessing the return, CRA will automatically add the T5.

What can you claim as medical expenses?

Any prescription drugs, dental, vision, surgeries, prescribed vaccinations, or insurance premiums can be claimed as medical expenses as long as they are paid out-of-pocket.

YES. YOU CAN CLAIM UHIP, HEALTH INSURANCE PREMIUMS AND SUCH PAID THROUGH THE UNIVERSITY.

This means that the taxpayer must have paid these amount and was not reimbursed by insurance. This list is not exhaustive and can include many other items.

Students at Universities often pay costs like these through their student fees. You should carefully inspect your fees to see if any costs are marked as health premiums or UHIP.

Can we claim FedCare, UHIP, StudentCare, and other health insurance premium payments?

Any prescription drugs, dental, vision, surgeries, prescribed vaccinations, or insurance premiums can be claimed as medical expenses as long as they are paid out-of-pocket.

As stated above, YES.

Can we claim moving expenses?

If you moved at least 40 km closer to your new workplace or for school, yes you can claim moving expenses. Generally not worth it to claim moving expenses for school since it can only be claimed against things like scholarship income, which is tax-free anyways.

Can you claim moving expenses when moving to Canada?

Short answer: No.

Long answer: You could claim moving expenses when moving to Canada if you are a factual resident of Canada. Generally this means that although you were not physically in Canada, you had significant residential ties to Canada and you were already subject to Canadian taxes before you even moved to Canada. Generally as an immigrant to Canada, you are NOT a factual resident of Canada before your move, so.. no you can't claim moving expenses.

What are tuition credits, and how can I use them?

Canada does not want you to be unduly punished for paying fees to go to post-secondary school. Canada then says "Okay, for every dollar paid for tuition, you do not need to pay 15 cents of taxes." If you paid $1,000 in tuition, you get a tax credit to reduce your taxes by $150. Ontario used to have a tuition credit, but this was phased out in 2017.

What if I'm not paying tax anyways?

If you're not using all your tuition credits, you have two options available to you:

1) Carry forward the credits. Any unused credits can be carried forward indefinitely and applied against a year where you do have income.

2) Popular amongst parents, you can transfer up to $5,000 of tuition credits ($750 of tax savings) to a parent. This can only happen in the year you receive a T2202 (you can't transfer credits from a prior year)

Where do I find the carryover credits from prior years?

These are listed the Notice of Assessment, or on Sch.11 and ON Sch.11 (if there are provincial credits pre-2018) of the prior year tax return.

Look the tax return from last year and search for S11 for that information. Alternatively, look at last year's Notice of Assessment.

Can we use payroll/ROE instead of a T4?

No. Payroll stubs do not always show all amounts received by the employee, and some benefits may not be included. T4 is the official document that must be used whenever possible.

My client can't find their T4!

Call the CVITP Helpdesk on Monday-Saturday, and they can provide that info. Ask me for this number.

I can't find box 014 on the T4A!

It's a registrant number, ignore it.

When I put in information from box 20 and box 48, I'm getting an error!

This is due to these boxes being considered self-employment income. Contact a mentor immediately.

I can't find Box 105 on the T4A!

Go to box 28+, there's a dropdown menu there. We went over this in training. Tsk.tsk.

See Data Room > Tax Docs> World Income - CRA Verification