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dbjj
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Joined: 19/February/2008
Location: Canada
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Topic: Paid off Posted: 19/February/2008 at 8:00am |
After over 10 years of brutal relations with a collection agency over my student loans, I took out several loans and paid off over 15000 of debt. From my understanding I would be eligible this year for 5000 rebate in GST. I asked the collection agency to give the tax receipt so I could claim, they told me they would not be responsible for issuing this, and directed me instead to the government.
Does anyone know where I can get this receipt so I can claim and get some money back to pay down my loans???
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administrator
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Joined: 25/January/2003
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Posted: 19/February/2008 at 9:15am |
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Not sure what you mean here... Do you mean a reciept for interest paid so you can claim it on your income tax?
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Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024
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dbjj
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Posted: 19/February/2008 at 9:18am |
Hi,
The colletion agency told me I should get a tax receipt from the government for the amount paid off and I would be eligible for some kind of rebate in the amount of 5000, gst or some other rebate, as of yet I have received nothing in terms of a T slip notifying me that the amount has been paid off.
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nsxxx
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Joined: 27/November/2007
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Posted: 19/February/2008 at 4:24pm |
If you paid 15,000 dollars in loans back to the government, where do you get the figure of 5000 from? I'm just asking because I borowed money from my family to pay off my student loan and i originally borrowed 16000 but I ended up paying 19000. Does that mean i get a 3000 dollar cheque from the government this year because thats how much i paid in interest? please help.
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administrator
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Posted: 20/February/2008 at 2:38am |
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you can claim the interest paid as a 'tax credit' If you paid 5000 in interest, it does not mean you get a cheque for 5000. You get to claim 5000 and get about 17% of it back...
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Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024
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dbjj
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Posted: 20/February/2008 at 9:46am |
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Hi in total I paid 40,000 off 15000 was the last remaining which apprears to have all been interest.
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dbjj
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Posted: 20/February/2008 at 9:52am |
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Thanks to the administrator my total debt was about 40,000 the reamainder I believed to be purely interest and this would account for 17% return allowance. Just one more question should they not be sending me some kind of T-Slip confirming receipt of payment like the banks send out for all the interest payment, or do the collection agencies not send any confirmation for payment of interest? Much appreciated.
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administrator
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Posted: 20/February/2008 at 10:38am |
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I will email my contact at HRSDC and ask what you should do....
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Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024
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administrator
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Posted: 06/March/2008 at 12:50pm |
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Got a message back from HRSDC...
"As I am sure you are aware, financial institutions and the Canada Revenue Agency are permitted to use third party collection agencies to recuperate Canada Student Loans, however it remains the responsibility of banks and the CRA to issue tax receipts for the purpose of claiming interest paid on a government student loan. "
So I sent another message ..."who should they contact to get a reciept?"
The answer I got back to day is:
"They should call HRSDC Financial Inquiries Unit at 819-997-0581 in Ottawa and 1-866-602-9454 rest of Canada from 7:00 a.m. to 6:00 p.m. EST."
Let us know how this goes.
Mark
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Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024
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Ferren
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Posted: 07/March/2008 at 8:16pm |
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If you can actually back up your claim of interest paid by statements or receipts showing that you actually paid it, then it is not really necessary rely on a third party to provide an official receipt. You can claim it on your income taxes anyway and if reassessed, provide them with the proof in the form of your statements. For example, if you made your payments to a financial institution, you can ask them for a printout of your account showing the balance at the beginning of the year and your payments and the balance at the end of the year. I'm not sure but I think you can even go back previous years with the student loan interest deduction. One way or another it is a legitimate claim and can not really be disallowed in the end.
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