Paying down a government student loan costs you interest, and that interest may give you a tax credit. Line 31900 is where the federal part of that claim goes.
What you can claim
Interest you paid on a student loan you received for post-secondary education under any of these:
- the Canada Student Loans Act
- the Canada Student Financial Assistance Act
- the Apprentice Loans Act
- provincial or territorial government laws similar to those acts
You can claim interest actually paid in the year, or in any of the preceding five years, if it has not already been claimed.
Only the student who is legally responsible for the loan can claim this credit. If someone else — a parent, say — paid the interest for you, you can still claim it as long as the loan is in your name. The amount cannot be transferred to another person, and the same interest cannot be claimed more than once.
What does not qualify
These cannot be claimed on line 31900 at all:
- interest on loans that are not government student loans
- interest on a loan that was combined, renegotiated, or reconsolidated with another loan
- interest paid because of a court judgment for failing to repay a student loan
The claim must cover only interest on the student loan itself, not interest on any other type of loan.
What your receipt must show
The CRA's page tells you to enter the total amount shown on the receipts, so the document that supports this claim is a receipt or an interest statement from whoever holds the loan. It has to show the amount of interest you paid, and it should identify the loan as a government student loan in your name.
The page does not spell out any other fields the statement must carry.
If you have no tax to pay this year
If you have no tax payable in the year you paid the interest, you can carry the unused amount forward and claim it in any of the next five years. Apply the oldest amounts first.
You are responsible for tracking your carry-forward amounts. The Canada Revenue Agency (CRA) does not do this for you, so keep the statements for the earlier years too, and take care not to claim the same amount twice.
The provincial or territorial side
Interest paid on student loans can also be claimed on the return for the province or territory where you lived at the end of the year. That amount goes on line 58520 of your provincial or territorial Form 428. If you lived in Quebec, Revenu Québec sets out how the provincial claim works.
What to keep
Keep the receipts or statements showing the interest you paid, for the current year and for any earlier year you are still carrying forward. Dossier files them by year so the oldest amounts are easy to find when you file.
If you file electronically, do not send any supporting documents with your return. Keep them in case the CRA asks to see them later. If you file on paper, attach your supporting documents for the amounts you are claiming.
Special rules may apply when the claim is made for someone who died. On a final return, the total amount shown on the receipts is entered and the receipts are attached to the return.
Official CRA sources
- Line 31900 – Interest paid on your student loans
- Line 31900 – Interest paid on your student loans, for someone who died
Source: Canada Revenue Agency (canada.ca). Not tax advice.