Student loans and student lines of credit are not considered income. Do not claim either of these on your tax return as income.
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 years (up to five years). Note that only you can claim the interest paid on your student loans, even if someone else paid the fees. The amount of interest you paid on student loans appears on the last bank statement of the tax year for the bank through which you got your student loan.
You cannot claim interest paid on a student line of credit.
To claim interest paid on a student loan:
- 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.