By completing Schedule M, you can claim a non-refundable tax credit if you or a relative paid interest on your student loans, as long as those student loans weren’t combined with any other type of loan (such as a line of credit).
You can claim this tax credit if the interest on your student loans was paid after 1997 and you received your loan under:
- The Act respecting financial assistance for education expenses
- The Canada Student Loans Act
- The Canada Student Financial Assistance Act
- The Apprentice Loans Act
- A law of province other than Québec governing the granting of financial assistance to post-secondary students
Remember, whether it was you or someone else who paid the interest on your student loans, only you can claim the tax credit.
You should refer to line 62 your Schedule M from last year, your Notice of Assessment (NOA), or your Notice of Reassessment to determine the amount you can claim. Even if you’re not going to claim the tax credit this year, you should complete Schedule M so you know how much interest you can carry forward later.
Note: If you paid interest on your student loans after 1998 but didn’t calculate your carry forward amount last year, you’ll need to enter the result of the following calculation into H&R Block’s tax software:
Interest you paid between 1998 and 2015 minus the interest you’ve already used to claim this credit in the past
For example, let’s say that between 1998 and 2015, you paid $2,400 in interest on your student loans. During that time, you claimed just $2,100 of the total interest you paid on your tax returns. In 2016, you’d be able to claim the remaining $300 in interest ($2,400 - $2,100) on your return.
Note: If you’re claiming your unused student loan interest on your federal return, refer to the most recent notice of assessment (NOA) issued to you by the Canada Revenue Agency (CRA). If you’re also claiming this amount on your Québec return, refer to the most recent NOA issued to you by Revenu Québec.
Where do I claim this?
Before you begin, make sure that you’ve told us you lived in QUÉBEC on December 31st of the 2016 tax year, in H&R Block’s tax software.
- Under the PREPARE tab, click the LET'S TALK ABOUT 2016 icon.
- Select the checkbox labelled I wasn’t a student, but have unused education amounts.
- Click the STUDENTS icon. You'll find yourself here:
- Under the CREDIT AMOUNTS heading, select the checkbox labelled Student loan interest paid in 2016 or interest not claimed in a previous year.
- When you arrive at the page for Interest paid on a student loan, enter your information into the tax software.