Transcript - International Students and Income Tax, Segment 8: Sources of income

Host: Welcome to the segment called Sources of 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 Peter Cheng. Welcome Peter.

Subject matter expert: Thank you Sarah.

Host: Can you tell me what types of income international students can earn that are not taxed?

Subject matter expert: Amounts that are not taxed include GST/HST credit payments and most scholarships or bursaries if they're received for a program that entitles you to claim the full-time education amount.

This is not a complete list. For more detailed information, go to the CRA webpage called Amounts that are not taxed.

Host: So now that you've told us about amounts that are not taxed, what types of income are taxed?

Subject matter expert: Generally, most types of income you receive are taxed and you have to report them on your income tax and benefit return.

Some of the common types of income an international student may receive are employment income, tips and gratuities, occasional earnings, and the taxable part of scholarships, fellowships, bursaries, and research grants.

Host: Let's say I'm an international student who is a resident of Canada for tax purposes, what income do I have to report?

Subject matter expert: If you're a resident or deemed resident of Canada for tax purposes, you have to report all the income that you earn from all sources world-wide.

So if you earn interest from a bank account in your home country, you have to report that income on line 121 of your tax return. You also have to complete Schedule 4.

Host: Now, if I'm an international student who is not a resident of Canada for tax purposes, what income do I report?

Subject matter expert: If you're a non-resident or deemed non-resident, you only have to report certain types of income from Canadian sources, such as employment income and the taxable portion of scholarships.

For a full list of income you have to report, go to the CRA webpage called Non-residents.

Host: Let's say I become a resident of Canada during the year, what income do I have to report?

Subject matter expert: The income that you have to report in Canada depends on when the income was earned. Your tax year will be divided into two parts.

The first part is called the non-resident part, and is from January 1st until the day before you became a resident of Canada for tax purposes. For that period, you only have to report certain income you earn in Canada, like income from employment and the taxable part of scholarships, fellowships, and bursaries.

The second part of the year is from the day you became resident until December 31st. It is the resident part of the year. For that period, you have to report all the income that you earn from all sources world-wide.

Have a look at Pamphlet T4055, Newcomers to Canada for more information on what income to report.

Host: Thank you, Peter.

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

Thank you for watching.

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