Personal Finance

Does Parent's TFSA income affects OSAP? How to calculate the TFSA Income?

  • Last Updated:
  • Dec 21st, 2020 2:34 pm
[OP]
Newbie
Jan 24, 2017
60 posts
22 upvotes

Does Parent's TFSA income affects OSAP? How to calculate the TFSA Income?

Does Parent's TFSA income affects OSAP? How to calculate the TFSA Income?
Is it based on balance sheet in statement Jan and Dec or based on trading capital gains+dividends?

I was asked to provide support docs related to TFSA income when the entered number in OSAP is bigger than 3000.
Images
  • OSAP3.jpg
7 replies
Member
May 24, 2018
460 posts
291 upvotes
Ontario
Support docs ? I wonder if the annual TFSA information slips filed to CRA by FI qualifies.

Appendix A & B document the details of information
https://www.canada.ca/en/revenue-agency ... eturn.html

These slips accessible on MyCRA helps

I am assuming annual income means the annual growth inside the TFSA (not to be confused with contribution & withdrawal)
[OP]
Newbie
Jan 24, 2017
60 posts
22 upvotes
Annual TFSA information slips filed to CRA by FI does not have camp ital gain, dividend etc. information.
Member
May 24, 2018
460 posts
291 upvotes
Ontario
I am thinking along this line
2019 TFSA income ➡ (2019 calendar year end FMV less 2018 calendar year end FMV) minus (2019 total contributions less 2019 total withdrawal)

I suppose it should be the same number if you go by account balance
(2019 year end statement balance less 2018 year end balance) minus (2019 total contributions less 2019 total withdrawal)

For disclaimer - this is just my individual idea & by no means authoritative
Newbie
Dec 1, 2017
29 posts
28 upvotes
hwyc2007 wrote: I am thinking along this line
2019 TFSA income ➡ (2019 calendar year end FMV less 2018 calendar year end FMV) minus (2019 total contributions less 2019 total withdrawal)

I suppose it should be the same number if you go by account balance
(2019 year end statement balance less 2018 year end balance) minus (2019 total contributions less 2019 total withdrawal)

For disclaimer - this is just my individual idea & by no means authoritative
I’m definitely not an expert but is specifies interest from a TFSA, not capital gains. I believe there’s a difference.
Member
May 24, 2018
460 posts
291 upvotes
Ontario
Booyayyc wrote: I’m definitely not an expert but is specifies interest from a TFSA, not capital gains. I believe there’s a difference.
Yeah. I'll go with Booyayyc's view as well.
Then again, I am also puzzled by the wording "interest earned on a TFSA" (& its intent) in OP's screenshot.

... because the meaning seems too narrow if only refer to interest from bank savings accounts & GICs
... what would be the reason to set aside capital gains & dividend yields in OSAP's context
and again,
... "Savings Account" in the phrase "Tax-Free Savings Account (TFSA)" constitutes more than bank savings accounts & GICs
Last edited by hwyc2007 on Dec 21st, 2020 9:15 am, edited 2 times in total.
Member
Jun 6, 2014
242 posts
89 upvotes
Toronto, ON
hwyc2007 wrote: Yeah. I'll go with Booyayyc's view as well.
Then again, I am also puzzled by the wording (& its intent) in OP's screenshot.
They want to know all sources of parental income, not only taxable income. Lets say someone was a very good investor and was making lots of capital gain or dividends in their TFSA. Why should a student whose parent made money in a TFSA get more OSAP then a student whose parent made the same amount in a non-registered account.
[OP]
Newbie
Jan 24, 2017
60 posts
22 upvotes
Foreign income and Canadian non-taxable income includes:
• income earned in a country other than Canada that has not been reported to the Canada
Revenue Agency (CRA) through line 104 (e.g. employment income, rental income or interests,
dividends and capital gains from investments)
• child support received
• foster parent payments
• income earned on a First Nations community in Canada
• lottery winnings totalling over $3,600
• gifts and inheritances totalling over $3,600
• life insurance compensation
• strike pay you received from your union
• interest, dividends or capital gains from tax-free savings accounts (TFSA) regardless of the
original source of the income
Images
  • OSAP4.png

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