Lana Oconnell
International students in Canada may need to file a Canadian income tax return, depending on their residency status. This status is determined by the residential ties they have with Canada, such as having a home in the country, a spouse or common-law partner, or a dependent. If international students have established significant residential ties with Canada, they are considered residents for income tax purposes and may need to file a tax return. However, if they do not have significant residential ties and spend less than 183 days or 6 months in Canada, they are typically considered non-residents and may not need to file a tax return. It is important for international students to understand their residency status and the associated tax filing requirements to ensure they comply with Canadian tax laws during their studies in the country.
| Characteristics | Values |
|---|---|
| Who needs to file taxes? | International students in Canada who have worked in Canada or received income from teaching or research assistantships, other employment, investments, or business income. |
| Who does not need to file taxes? | International students in Canada who have not worked or received any income in Canada. |
| What if I have not filed taxes in previous years? | Past years' tax returns can be filed in the same manner as the current year: online or on paper. |
| What if I have no income? | Even if you do not have any income in Canada, you may need to file a return to receive benefit and credit payments you are eligible for. |
| What if I have children? | No specific documentation is required to claim dependents for tax purposes. However, the Canada Revenue Agency (CRA) may ask for immigration documents and birth certificates later. |
| What if I am married or have a common-law partner? | Married or common-law couples must file separate tax returns. A spouse may claim you as a dependent and/or claim your tuition as a tax credit to reduce their taxes payable by up to $5000. |
| What if I have a spouse or common-law partner who is working full-time on an open work permit? | A spouse may be able to claim you as a dependent and/or your tuition as a tax credit to reduce their taxes payable by up to $5000. |
| What if I have a scholarship, fellowship, or bursary? | You do not need to pay taxes on income from scholarships, fellowships, or bursaries, but you must provide your ITN or SIN when requested for tax purposes. |
| What if I am a graduate student working as a research or teaching assistant? | You will receive a T4A slip from your university, which you will use to file your taxes. |
| What if I have moving expenses? | You may claim moving expenses if you have taxable scholarship income, which is usually not the case. Eligible moving expenses include transportation, storage of personal belongings, travel, and temporary accommodations. |
| What if I have other income from outside Canada? | Students must generally report income they receive from outside of Canada. Students from countries with a tax treaty with Canada may not have to pay Canadian income tax on this income. |
| What if I have a tax treaty with my home country? | If your home country has a tax treaty with Canada, you may be considered a non-resident of Canada for income tax purposes even if you have established significant residential ties with Canada. |
| What is my residency status? | Your residency status is based on the residential ties you have with Canada. Residential ties can include having a home in Canada, a spouse or common-law partner, or a dependent who is moving to Canada to live with you. |
| How do I determine my residency status? | You can complete and submit Form NR74, Determination of Residency Status (entering Canada) to the CRA to get an opinion about your residency status. |
| When is the deadline for filing taxes? | If you owe income tax, you must pay it by April 30 for the previous calendar year. |
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What You'll Learn
Residency status
An international student's residency status in Canada is a crucial factor in determining their income tax obligations and filing requirements. This status is based on the residential ties they establish with Canada and can be different from their immigration status.
Residential ties refer to the connections and attachments an individual has with Canada, which can include owning a home, having a spouse or common-law partner, or having dependents living with them in Canada. Other ties may include having a Canadian driver's licence, opening a bank account, or having Canadian medical insurance.
International students studying in Canada are typically considered one of the following for income tax purposes:
Resident
A student is considered a resident of Canada for tax purposes if they establish significant residential ties with the country. This status includes those who reside in Canada only part of the year. As a resident, an individual must follow the filing requirements for newcomers to Canada and may be eligible for benefit and credit payments, such as the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit.
Non-Resident
A student is considered a non-resident of Canada for tax purposes if they do not establish significant residential ties and stay in the country for less than 183 days during the year. Non-residents must declare their net income earned outside of Canada on their tax return to avail of non-refundable tax credits. It is important to note that non-residents may still need to file a tax return if they received income in Canada, even if it falls below the tax-free allowance.
Deemed Resident
Even if an individual does not establish significant residential ties with Canada, they may be deemed a resident for tax purposes if they meet certain conditions. These conditions include staying in Canada for 183 days or more in a calendar year and not being considered a resident of their home country under a tax treaty between Canada and that country.
Deemed Non-Resident
On the other hand, an individual may be deemed a non-resident of Canada for tax purposes even if they have established significant residential ties. This can occur if they are considered a resident of another country that Canada has a tax treaty with.
To clarify their residency status, international students can complete and submit Form NR74, Determination of Residency Status (entering Canada) to the Canada Revenue Agency (CRA). Additionally, consulting with a tax professional can provide assistance in determining residency status and understanding tax obligations.
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Tax credits
The tax credits available to international students in Canada depend on their residency status. International students in Canada are typically considered one of the following:
- Resident: Includes students who reside in Canada for at least 183 days in a calendar year or part of the year.
- Non-resident: Includes students who stay in Canada for less than 183 days during the year and do not have significant residential ties in Canada.
Residents
If you are an international student and a resident of Canada for tax purposes, you may be eligible for benefit and credit payments to help with your cost of living. To continue receiving these benefits, you must file your income tax and benefit return each year. Here are some tax credits that residents may be able to claim:
- Tuition tax credit: Students can claim tuition credits using the T2202/T2202A form, which would be provided by their school.
- Moving expenses: If you moved at least 40 kilometres away from home to get a summer job or to take courses as a full-time student in a post-secondary program, you may be able to claim your moving expenses.
- Foreign tax credit: As a resident, you can claim any taxes you paid to a foreign government as a foreign tax credit.
- Unused tuition tax credits: If you have unused tuition tax credits for the current tax year, you can carry them forward to claim in future years. Alternatively, you can transfer up to $5,000 to qualifying relatives.
Non-Residents
Non-residents are not eligible for benefits or credits in Canada. However, they may still need to file a tax return to pay taxes or receive a refund if they paid too much tax on income from Canadian sources.
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Tax treaties
Canada has tax treaties with many countries, which may impact how income is taxed for international students. These treaties can help to avoid double taxation. It is important to check if a tax treaty applies to your specific situation.
If you are an international student in Canada, your tax residency status will determine your income tax filing requirements. Your residency status is based on the residential ties you have with Canada. Residential ties can include having a home in Canada, a spouse or common-law partner, or a dependent child moving to Canada to live with you.
If you have established significant residential ties with Canada, you are considered a resident for income tax purposes. In this case, you may need to follow the filing requirements for newcomers to Canada and report your worldwide income.
On the other hand, if you have not established significant residential ties with Canada and stay in the country for less than 183 days during the year, you are considered a non-resident for income tax purposes. Non-residents are taxed only on their Canadian-source income. Additionally, if you do not have significant residential ties but stay in Canada for 183 days or more in a calendar year, you may be deemed a resident for tax purposes.
It is important to note that your residency status for tax purposes may differ from your immigration status. To work in Canada and file taxes, international students need a Social Insurance Number (SIN). This number is used for tax purposes and to access government benefits.
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Tax refunds
As an international student in Canada, you may need to file a Canadian income tax return. Your residency status determines your income tax return filing requirements.
If you are a resident for tax purposes, you could get benefit and credit payments that can help with your cost of living. To continue receiving these payments, you will need to file your income tax and benefit return each year.
If you are a first-time filer, you must bring your T-card to print your return on campus. You are responsible for checking the accuracy of your personal income tax return before submitting it by Netfile or mail to the Canada Revenue Agency (CRA). If filing by paper copy and mail, be sure to sign your tax return on page 4 of the T1 General. Make a copy of your tax return and all receipts and forms for your records.
You can file your own Canadian income tax return using UFILE online software and instructions from the CRA. Alternatively, you can pay to have your Canadian Income Tax Return completed by a tax preparation company or licensed accountant (CGA or CPA).
To set up a direct deposit of your tax refund, you will need to provide your financial institution with the following information: Account #, Branch #, and Institution #.
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Tax forms
As an international student in Canada, you may need to file a Canadian income tax return. Your residency status will determine your income tax return filing requirements.
If you are a resident of Canada for income tax purposes, you will need to follow the filing requirements for residents of Canada. This includes students who reside in Canada only part of the year. You are a resident of Canada for income tax purposes if you establish significant residential ties with Canada. Residential ties can include having a home in Canada, a spouse or common-law partner, or a dependent who is moving to Canada to live with you.
If you are a non-resident of Canada for income tax purposes, you will need to follow the filing requirements for non-residents of Canada. You are a non-resident of Canada for income tax purposes if you do not establish significant residential ties with Canada and you stay in Canada for less than 183 days during the year.
If you are a deemed resident of Canada for income tax purposes, you will need to follow the filing requirements for deemed residents of Canada. You may be a deemed resident of Canada if you have not established significant residential ties with Canada but have stayed in Canada for 183 days or more during the calendar year and are not considered a resident of your home country under the terms of a tax treaty between Canada and that country.
If you are a deemed non-resident of Canada for income tax purposes, you will need to follow the filing requirements for non-residents of Canada. You may be a deemed non-resident of Canada if you establish significant residential ties with Canada and are considered a resident of another country that Canada has a tax treaty with.
To determine your residency status, you can complete and submit Form NR74, Determination of Residency Status (entering Canada) to the CRA.
When filing your tax return, you will need to fill out various government forms, such as the T1 (Income Tax and Benefit Return form) and the RC151 GST/HST Credit and Climate Action Incentive Payment Application for Individuals Who Become Residents of Canada. You will also need your payslips and receipts for any eligible work-related expenses.
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Frequently asked questions
Yes, international students in Canada may have to file a Canadian income tax return.
Your residency status determines your income tax return filing requirements. If you have established significant residential ties with Canada, you are considered a resident for tax purposes and must follow the filing requirements for residents. If you have not established significant residential ties and are in Canada for less than 183 days in a year, you are considered a non-resident and must follow the filing requirements for non-residents.
Residential ties can include having a home in Canada, a spouse or common-law partner, or a dependent child moving to Canada to live with you.
Filing taxes is the only way to obtain benefits and credits such as the GST/HST credit, the Child Tax Benefit, and tuition credits. You may also be eligible to receive benefit and credit payments that can help with your cost of living.
You will need to fill out tax forms such as T2202, T4, and T4A. You can download these forms from Workday.
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