Personal Finance

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

  • Last Updated:
  • Jul 15th, 2021 10:58 pm
[OP]
Jr. Member
Jan 24, 2017
120 posts
47 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.

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
  • OSAP3.jpg
Last edited by lhq2100 on May 17th, 2021 9:51 pm, edited 1 time in total.
11 replies
Sr. Member
May 24, 2018
593 posts
398 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]
Jr. Member
Jan 24, 2017
120 posts
47 upvotes
Annual TFSA information slips filed to CRA by FI does not have camp ital gain, dividend etc. information.
Sr. Member
May 24, 2018
593 posts
398 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
38 posts
35 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.
Sr. Member
May 24, 2018
593 posts
398 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
294 posts
124 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]
Jr. Member
Jan 24, 2017
120 posts
47 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
[OP]
Jr. Member
Jan 24, 2017
120 posts
47 upvotes
Interest and Dividends are shown on statements. and Capital gains could be calculated if there are not too much tradings.

However, if the following formula are used , the result could be completely different because growing stock could be double in value, but there is no dividend and no tradings.
(2019 year end statement balance less 2018 year end balance) minus (2019 total contributions less 2019 total withdrawal)

For example, assume that I bought a security in my TFSA, the stock price is tripled in 2020 year.
The balance sheet from 10,000 in Jan to 30,000 in December.
1. If based on balance sheet between Jan and Dec, the income in TFSA is 20,000.
2. However, if based on interest, dividend, capital gain without buy/sale , the income should be zero.
Deal Fanatic
Feb 4, 2015
7882 posts
4006 upvotes
Canada, Eh!!
Depending on brokerage... some have online tool where you can see dividends/interest and capital gains/losses for a particular account.

Can check by year or custom date ranges.
2022: BOC raised 2 times and MCAP raised its prime next day.
2017 to 2018: BOC raised rates 5 times and MCAP raised its prime next day each time.
2020: BOC dropped rates 3 times and MCAP waited to drop its prime to include all 3 drops.
[OP]
Jr. Member
Jan 24, 2017
120 posts
47 upvotes
I called Ontario OSAP number, the staff let me call specific university. It seems that the answers depends on the university.
Newbie
Jul 14, 2021
1 posts
Just wondering if you ever got a clear answer on this? I’m trying to fill out my application and can’t seem to figure out this answer either!

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