Yes, you can deduct the interest paid on student loans for the year off of your taxable income.
You may be eligible to claim an amount for the interest paid on your loan in 2011 for post-secondary education if you received it under:
- the Canada Student Loans Act;
- the Canada Student Financial Assistance Act; or
- a similar provincial or territorial government laws.
The interest can be claimed by you or someone related to you. It can only be claimed for an amount not previously claimed.
If you have no tax payable for the year the interest is paid, it is to your advantage not to claim it on your tax return. You can carry the interest forward and apply it on your return for any of the next five years.
You cannot claim interest paid in respect of a judgment obtained after you failed to pay back a student loan.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.