Using non-taxable income to Sponsor Parents

[amex]

Hello, I was planing for applying to sponsor my single parent for a while and now with the Covid closings last year I am facing a dilemma preparing documents for this year's family sponsorship program. Every year they ask for the income NOA (line 150) of the last three years. I don't have any problem for 2019 and 2021 as my income in these years are fairly over the threshold for two parents. However, being a graduate student my off-campus income source was notebaly diminished while I didn't lost my job completely to be eligible to receive any EI but after filing the tax it is just a few thounds under the covid income threshold (32,899) for sponcering two parents (of course I am about to apply for my single parent). Being a graduate full-time student I receive about 25,000 university fellowship which is nontaxible. ofcourse I file this every year as I receive T4A tax slips but when checking full-time students the tax software automatically doesn't calculate that towards taxible income and it doesn't show on line 150.

I read the page https://www.cic.gc.ca/english/helpcentre/answer.asp?qnum=1525&top=14 and what can't be count towards income and graduate fellowship is not one of them but it is also not in NOA as income. So I don't know what is my situation and It is not fair just because of 2020 to wait another two years to be able to apply.

I apperacite any help on this issue.

 

[canuck78]

Hello, I was planing for applying to sponsor my single parent for a while and now with the Covid closings last year I am facing a dilemma preparing documents for this year's family sponsorship program. Every year they ask for the income NOA (line 150) of the last three years. I don't have any problem for 2019 and 2021 as my income in these years are fairly over the threshold for two parents. However, being a graduate student my off-campus income source was notebaly diminished while I didn't lost my job completely to be eligible to receive any EI but after filing the tax it is just a few thounds under the covid income threshold (32,899) for sponcering two parents (of course I am about to apply for my single parent). Being a graduate full-time student I receive about 25,000 university fellowship which is nontaxible. ofcourse I file this every year as I receive T4A tax slips but when checking full-time students the tax software automatically doesn't calculate that towards taxible income and it doesn't show on line 150.

I read the page https://www.cic.gc.ca/english/helpcentre/answer.asp?qnum=1525&top=14 and what can't be count towards income and graduate fellowship is not one of them but it is also not in NOA as income. So I don't know what is my situation and It is not fair just because of 2020 to wait another two years to be able to apply.

I apperacite any help on this issue.

No matter what if you don’t meet NOA for your family size in 2018 you don’t qualify in the first place so whether your fellowship income counts is not an issue. Did you even apply last year? If not you also don’t qualify for this draw.

 

[amex]

No matter what if you don’t meet NOA for your family size in 2018 you don’t qualify in the first place so whether your fellowship income counts is not an issue. Did you even apply last year? If not you also don’t qualify for this draw.

Thanks for the reply.
I do meet all minimum (even for 2018) except for 2020
When I add my fellowship to my income in NOA for 2020 my income goes over 50K and I couldn't find if I can't use the fellowship as a source of income. For example, If I was a part-time student exactly with the same salaries, tuition and ... my NOA would show the 50K since I needed to pay tax for my fellowship but as a full-time student, I have a tax waiver for the full amount of the fellowship I receive.
It just doesn't make sense why I can't add my fellowship to my income to be able to apply

 

[canuck78]

Thanks for the reply.
I do meet all minimum (even for 2018) except for 2020
When I add my fellowship to my income in NOA for 2020 my income goes over 50K and I couldn't find if I can't use the fellowship as a source of income. For example, If I was a part-time student exactly with the same salaries, tuition and ... my NOA would show the 50K since I needed to pay tax for my fellowship but as a full-time student, I have a tax waiver for the full amount of the fellowship I receive.
It just doesn't make sense why I can't add my fellowship to my income to be able to apply

Because fellowships are not the same as a salary and are not taxable. You contradict yourself by saying that you paid tax on your fellowship yet you have a tax waiver. Unless you are in Quebec fellowships do not count towardsLICO because they are not considered taxable income. Unfortunately you don’t qualify for PGP.

Looks like you only recently got PR. Did you apply for PGP last year?

 

[amex]

No, I didn't apply for PGP last year.
When it comes to terminology there is a difference between income and salary. Research fellowships are fixed annual funds that one receives for conducting research and are definitely a type of income and salary.
It could have been easier if they write this statement clearly on the page that any source of fund that is non-taxable is not acceptable as income.

 

[Naturgrl]

No, I didn't apply for PGP last year.
When it comes to terminology there is a difference between income and salary. Research fellowships are fixed annual funds that one receives for conducting research and are definitely a type of income and salary.
It could have been easier if they write this statement clearly on the page that any source of fund that is non-taxable is not acceptable as income.

You are not eligible for PGP this year because they are only accepting those who applied last year. So for 2022 (rules may change again), you will need LICO from the previous 3 years (2021, 2020 and 2019) for the total number of people. Since it is a lottery, you may not be selected.

 

[scylla]

Hello, I was planing for applying to sponsor my single parent for a while and now with the Covid closings last year I am facing a dilemma preparing documents for this year's family sponsorship program. Every year they ask for the income NOA (line 150) of the last three years. I don't have any problem for 2019 and 2021 as my income in these years are fairly over the threshold for two parents. However, being a graduate student my off-campus income source was notebaly diminished while I didn't lost my job completely to be eligible to receive any EI but after filing the tax it is just a few thounds under the covid income threshold (32,899) for sponcering two parents (of course I am about to apply for my single parent). Being a graduate full-time student I receive about 25,000 university fellowship which is nontaxible. ofcourse I file this every year as I receive T4A tax slips but when checking full-time students the tax software automatically doesn't calculate that towards taxible income and it doesn't show on line 150.

I read the page https://www.cic.gc.ca/english/helpcentre/answer.asp?qnum=1525&top=14 and what can't be count towards income and graduate fellowship is not one of them but it is also not in NOA as income. So I don't know what is my situation and It is not fair just because of 2020 to wait another two years to be able to apply.

I apperacite any help on this issue.

Unfortunately I think you may be stuck unless you can find a way to make the fellowship taxable.

As you've said, IRCC relies specifically on taxable income in the NOA (i.e. line 150) to determine if LICO is met. As long as you are a full time student, fellowships aren't so much classified as income for tax purposes but instead as scholarships / bursaries and this is why they are not taxed. I unfortunately don't see a way to get this money included and considered. If it's not taxed, it's not on line 150. The income needs to be taxable to be included in LICO.

And I agree it would be different if you were a part time student since in that case the fellowship would be taxable. From a tax perspective, I guess you could speak with a tax consultant to find out if your understanding of CRA laws are correct and this fellowship is taxable - or if there is a way to make the fellowship taxable (of course that would mean a higher tax bill to you and you would need to refile your taxes). The fellowship needs to be taxable to be included.