The Canada Revenue Agency (CRA) considers student loan forgiveness as taxable income. However, there are some exceptions and deductions available.
If your student loan is forgiven, you may be required to pay taxes on the amount forgiven. But, some programs like the Canada Student Loans Program offer tax-free forgiveness.
Certain student loan forgiveness programs in Canada are tax-free, such as the Severe Permanent Disability Benefit. However, others may be considered taxable income.
A recent study by the Institute for Research on Public Policy found that student loan forgiveness can have significant tax implications for borrowers. The study recommends policy changes to mitigate these effects.
Use our student loan forgiveness tax calculator to determine how much you may owe in taxes if your student loan is forgiven. The calculator takes into account your income, loan amount, and other factors.
Watch our video to learn more about the tax implications of student loan forgiveness in Canada. Our expert explains the different types of forgiveness programs and how they affect your taxes.
Humber College's financial aid office provides information on student loan forgiveness and tax credits. Learn how to claim tax credits and deductions related to your student loan forgiveness.
The Ontario government provides tax information for borrowers who have received student loan forgiveness through the Canada Student Loans Program. Learn about tax implications and available deductions.