The $375/Week Student Bonus in the Disability Supports Deduction (Canada)

Why students need a separate rule

The Disability Supports Deduction is normally capped at your earned income. If you had $20,000 in employment income, you can deduct at most $20,000 in disability support expenses — though in practice, real-world expenses rarely hit that ceiling.

The problem for students is obvious: many full-time students have little or no earned income. Without any adjustment, a disabled student who paid $8,000 in disability-related expenses to attend school might be able to deduct nothing — simply because they weren't working at the same time.

The student school-attendance bonus fixes this. It allows weeks of enrollment to substitute for a portion of the earned income ceiling, so students who are attending school can still claim meaningful deductions even if they weren't earning a salary.

How the bonus is calculated (Lines 5–10 of Form T929)

The bonus is calculated through six lines of Form T929 (lines 5 to 10). Here is what each one does:

Line 5 — Net income. Enter your net income as it would appear on line 23600 of your T1, calculated before any disability supports deduction. This is your total income minus most deductions, but with line 21500 treated as zero for this calculation.

Line 6 — Earned income (same as Line 4). This simply restates your earned income from Line 4.

Line 7 — Net income minus earned income. Subtract Line 6 from Line 5. If the result is negative, use zero. This number represents the gap between your total net income and the income that already drives your deduction ceiling. For most students, this gap is small — they may have scholarship income, bursaries, or student grants that count as net income but not as earned income.

Line 8 — Weeks enrolled. Enter the number of weeks during the tax year that you attended the designated educational institution or secondary school while enrolled in an educational program. Count only active enrollment weeks — not holidays or breaks that fall outside your enrollment period.

Line 9 — Weeks multiplied by $375. Multiply Line 8 by $375. This is the gross school-attendance amount.

Line 10 — Lesser of Lines 7 and 9, maximum $15,000. Take whichever is lower: the gap from Line 7 or the gross school amount from Line 9. The result cannot exceed $15,000.

This amount is then added to your earned income on Line 11, raising the ceiling for the final deduction.

The $15,000 cap

Line 10 is capped at $15,000. In dollar terms, $15,000 ÷ $375 = 40 weeks. If you were enrolled for 40 weeks or more, the cap is only binding if Line 7 (the net/earned income gap) also exceeds $15,000.

For most students, the cap is not the binding constraint. More commonly, Line 7 is the binding number — it limits the bonus to the actual gap between net income and earned income, which is often modest.

Working through an example

Suppose you are a full-time student with a visual impairment enrolled in a 34-week university program. Your finances for the year:

• Total disability support expenses paid: $7,200 (talking textbooks, note-taking services, optical scanner)
• Reimbursements received: $0
• Net disability supports expenses (Line 3): $7,200
• Earned income from a part-time campus job: $6,500 (Line 4)
• Net income (line 23600 before the deduction): $9,000 (includes $2,500 taxable bursary)

Now work through the student lines:

• Line 5 (net income): $9,000
• Line 6 (earned income): $6,500
• Line 7 (net minus earned): $9,000 − $6,500 = $2,500
• Line 8 (weeks enrolled): 34
• Line 9 (34 × $375): $12,750
• Line 10 (lesser of $2,500 and $12,750, max $15,000): $2,500

Without the student bonus:

• Line 11 would be $6,500 (earned income alone)
• Line 12 (deduction): min($7,200, $6,500) = $6,500

With the student bonus:

• Line 11 = $6,500 + $2,500 = $9,000
• Line 12 (deduction): min($7,200, $9,000) = $7,200

The bonus adds $700 to the deduction — recovering what would otherwise be lost because the student's net income included non-earned amounts.

What if earned income is zero?

If a student has absolutely no earned income, Line 4 = 0. The student bonus calculation still runs, but Line 7 = net income − $0 = net income. The full gap between net income and zero becomes available to be matched against the weeks × $375 formula.

However, if net income is also zero (the student has no income of any kind), Line 7 = 0 and Line 10 = 0. There is nothing to add to the ceiling, and the deduction is zero regardless of expenses paid.

The bonus is most useful when a student has some net income — for example from a taxable bursary or a small part-time job — but less earned income than their total net income.

What qualifies as a designated educational institution?

The T929 form uses the phrase "designated educational institution or a secondary school." This covers:

• Designated educational institutions as defined for student loan purposes — essentially universities, colleges, and vocational schools that are certified to participate in federal student assistance programs
• Secondary schools — high schools providing secondary education programs

Informal courses, continuing education programs not attached to a designated institution, and professional development courses generally do not count for this purpose.

What counts as an educational program?

An educational program for T929 purposes is a program of study at a secondary or post-secondary level. Casual or hobby-oriented courses are not included. If you are enrolled in a recognized degree, diploma, certificate, or secondary school program, you are in an educational program for these purposes.

Interaction with other student tax credits

Claiming the Disability Supports Deduction does not prevent you from also claiming the tuition tax credit, the interest on student loans credit, or the education-related amounts transferred to a parent. These programs are separate and can generally be used alongside each other as long as the underlying expenses are not double-counted.

The one overlap to watch is with the medical expense credit. If you paid disability-related expenses to attend school, you may be able to claim them either as a disability support or as a medical expense — but not both. The comparison guide explains how to choose.

Maximizing the student deduction

A few planning notes:

Count your weeks carefully. Each additional week of enrollment adds $375 to Line 9. Confirming your exact enrollment period with your institution ensures you don't undercount.

Include all eligible educational expenses. Talking textbooks, note-taking services, and reading services paid specifically for school are eligible. Review the complete eligible expense list to make sure you haven't missed anything.

Use the calculator to test scenarios. The T929 Disability Supports Deduction Calculator shows you both the standard and student paths side by side so you can see exactly how much the bonus is worth in your situation.

Check whether a medical claim would be better. For students with no earned income and only modest non-earned income, the ceiling may still be low even with the bonus. In some cases, claiming disability-related expenses as medical expenses (no income ceiling) produces a better overall result.

Related guides

• T929 Disability Supports Deduction Calculator
• What is the Disability Supports Deduction? Complete Canadian Guide
• How to Complete Form T929: Step-by-Step
• Who Qualifies for the Disability Supports Deduction in Canada?
• Complete List of Eligible Disability Support Expenses in Canada
• Disability Supports Deduction vs. Medical Expense Tax Credit

Disclaimer: This article reflects the 2024 T929 rules. Tax rules change annually. Always verify with the current CRA guidance or consult a qualified Canadian tax professional.