Before you begin entering amounts for students loans or lines of credit into your tax return, it is important to understand that these amounts are not considered income. As such, you can't claim these amounts in total.
However, you can claim the interest paid on a student loan as a deduction to help lower your tax balance owing. Once your tax owing is reduced to zero, any leftover interest you paid can be carried forward to future tax years (for up to five years). You may only claim the interest paid on your student loans, even if someone else paid the fees. Any interest paid on a student line of credit cannot be claimed.
- Select Find in the upper-right hand corner.
- In the Find window, type Students
- Select Students from the list and then select Go.
- On the Student Profile step, check Student loan interest and select Continue.
- On the Student loan interest step, select Yes, I have eligible student loan interest, and then select Continue.
- On the Student Loan Interest step, enter your interest amounts.