(NC) Even students who didn’t earn enough money to necessitate paying income tax should still consider filing an income tax return.
One reason is the fact 18 per cent of earned income from the previous year is eligible to be contributed to an RRSP; plus students don’t have to deduct an RRSP contribution in the year in which it was made.
Instead, they can carry it forward for deduction in a future period when they have sufficient income with which to offset the RRSP contribution. When in question, consult a certified general accountant or tax season resources.
