Transcript - International Students and Income Tax, Segment 11: Deductions from your income

Host: Welcome to the segment called Deductions from your income, part of the International Students and Income Tax video.

This segment mentions links where you can get more information. You can find all these links in the Related links for this segment.

With me is Nicole Bélanger. Welcome Nicole. 

Subject matter expert: Thank you, Sarah.

Host: What deductions can international students claim?

Subject matter expert: There are four types of deductions and credits that you might be eligible for.

They are: deductions from your total income, which are used to calculate your net income; deductions from your net income, which are used to calculate your taxable income; non-refundable tax credits; and federal and provincial or territorial tax credits.

This segment will focus on the deductions used to calculate your net income and the deductions used to calculate your taxable income. You will find the deductions used to calculate your net and taxable income on page 3 of the income tax and benefit return.

Host: What is my net income used for?

Subject matter expert: Your net income is used to calculate certain federal and provincial or territorial non-refundable tax credits.

The CRA also uses your net income and your spouse or common-law partner's net income to calculate the Canada child tax benefit, the GST/HST credit, and certain other credits.

Host: What is my taxable income used for?

Subject matter expert: Your taxable income is the amount used to calculate your federal tax on your Schedule 1, and your provincial or territorial tax on provincial or territorial Form 428.

Host: What are some of the common deductions that I might be able to claim in calculating my net income?

Subject matter expert: It depends on if you had a job in Canada.

All international students may be able to claim child care expenses and moving expenses.

If you are an international student who worked in Canada, you might be able to claim the registered pension plan deduction if you have an amount in box 20 on your T4 slip. You might also be able to claim the annual union, professional, or like dues if you have an amount in box 44 of your T4 slips.

You can find a full list of deductions on the CRA webpage called Net income.

Host: How do I know if I'm eligible for moving expense deductions? 

The general eligibility rules for moving expenses are discussed in the Canadian Students and Income Tax video series. However, as an international student, there are some rules for claiming moving expenses that you should be aware of.

Host: What do I need to know about moving expenses? 

Subject matter expert: If you move to Canada to take courses as a full-time student, you can deduct moving expenses only from the taxable part of your scholarships, fellowships, bursaries, and research grants.

You can find a list of eligible moving expenses on the CRA webpage called Line 219-Moving Expenses.

Host: Is an international student who is not a resident of Canada entitled to the same non-refundable tax credits as a resident of Canada? 

Subject matter expert: If you're a non-resident of Canada for tax purposes, and 90% or more of your income is from Canadian sources, you may be able to claim all of the federal non-refundable tax credits that apply to you and any corresponding provincial or territorial non-refundable tax credits.

If you're a non-resident, and less than 90% of your income is from sources in Canada, you can claim certain non-refundable tax credits that apply to you and any corresponding provincial or territorial non-refundable tax credits.

Host: Where can I get more information on the deductions used to calculate my taxable income? 

Subject matter expert: You can find information on all the deductions used in calculating your taxable income on the CRA webpage called Taxable income.

Host: Thank you, Nicole.

This concludes the segment called Deductions from your income, part of the CRA's International Students and Income Tax video.

Thank you for watching.

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