Tax Guide for Students and Part-Time Workers in Quebec: Income Reporting, Tuition Credits, and GST/QST Considerations — CPA Firm Near You, Montreal

Introduction

Students and part-time workers in Quebec often juggle school, part-time jobs, gig work, tutoring, internships, and occasional self-employment. Because income comes from many different sources, students frequently underreport income, miss valuable tuition credits, or fail to claim deductions they are entitled to. This guide explains how students must report income, how tax credits work, when GST/QST registration is required, and how a CPA firm near you in Montreal can help students file accurately and maximize refunds.

Legal and Regulatory Framework

Under the Income Tax Act and the Taxation Act of Quebec, students must report all income earned from employment, tips, internships, contract work, scholarships, bursaries, and self-employment. T4, T4A, RL-1, and RL-8 slips must be included in the tax return. Tuition credits from post-secondary institutions can reduce federal and provincial tax owing and may be carried forward if not used. Students earning self-employment income must track expenses and determine whether GST/QST registration is required once taxable revenues exceed the small-supplier threshold. CRA and Revenu Québec require basic documentation including pay stubs, tuition receipts, school statements, and invoices for self-employment expenses.

Key Court Decisions

Courts have clarified that scholarships and bursaries used for education are often tax-exempt but must be reported. Judges have denied deductions where students attempted to claim personal living costs such as groceries or rent as business expenses. Cases also confirm that tips are taxable income and must be declared. Courts emphasize that students engaged in gig work or small businesses must file as self-employed and maintain documentation, regardless of age or student status.

Why CRA and Revenu Québec Target Students

Students are often audited because:
• Income from multiple sources is inconsistently reported
• Tip income is omitted
• Self-employment or gig income is unreported
• Tuition credits are miscalculated
• T4A bursary income is misunderstood
• GST/QST registration is ignored for taxable self-employment projects

Auditors compare payroll slips, RL-8 slips, school records, and platform payout statements (Uber Eats, DoorDash, Fiverr, etc.) to identify discrepancies.

Mackisen Strategy

At Mackisen CPA Montreal, we help students understand their tax obligations and maximize their refunds. We collect all slips, calculate tuition credits, organize employment and self-employment income, and apply appropriate deductions. For students with side businesses, we evaluate whether GST/QST registration is required, track expenses, and prepare complete business statements. Our team ensures accurate filing, prevents audits, and educates students on long-term tax planning. If a student faces an audit, we defend the filings, reconstruct missing documents, and negotiate reductions in reassessments.

Real Client Experience

A Montreal student working part-time at a café, tutoring, and earning small gig income failed to report self-employment revenue. CRA initiated a review. We reconstructed gig income from platform payouts, recalculated tuition credits, and corrected filings. The student avoided penalties and received a higher refund due to proper credit claims. In another case, a student misunderstood scholarship tax rules; we corrected the reporting and prevented an unnecessary reassessment.

Common Questions

Are scholarships taxable?

Often they are tax-free when used for educational purposes, but they must still be reported.

Do students need to register for GST/QST?

Only if they operate a taxable business and exceed the small-supplier threshold.

Are tuition credits refundable?

They are non-refundable but can reduce taxes owing and be carried forward to future years.

Can students deduct school-related expenses?

Only certain eligible expenses like textbooks (QC credit), software, and specific supplies, not general living costs.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps students, part-time workers, and young professionals stay compliant while maximizing tax refunds. Whether you are filing your first return or managing multiple income sources, our expert team ensures precision, transparency, and audit protection.