Proof of Parental Income for Ontario Tuition Grant
Before an Ontario Tuition Grant (OTG) is issued to a student, parental income reported on the OSAP or OTG-only application is verified against income that the parent(s) reported to the Canada Revenue Agency. If parental income cannot be verified through the Canada Revenue Agency, the students are required to provide additional supporting documentation to prove their parent’s income.
Reasons parental income cannot be verified include:
- Parent(s) have identified “other income” e.g., foreign income and/or non-taxable income;
- One parent has claimed their spouse as a dependent on their income tax return and the spouse has not filed their own tax return – in this case, net income, not gross income of the dependent spouse is reported;
- Parent(s) have not filed tax returns;
- Parent(s) are exempt from filing tax returns (e.g., Status Indian income tax exemption);
- Incorrect or incomplete information has been provided on the OSAP application or to CRA (SINs, date of birth (DOB), parental first and last names) so that a match cannot be made;
- Parent(s) have identified income for Line 150 but they have not provided their SIN.
Parent Has Foreign or Non-taxable Income
Where a parent’s income is earned in a foreign country, the parent is required to provide:
- Documentation from the tax agency of the country where the parent earned income stating their gross income during 2012 (e.g., tax card; notice of assessment); or
- Documentation from the parent(s) employer stating their gross income during 2012 (e.g., payment summary; certificate of income tax deducted; notarized letter from employer)
- must include the name, address, phone number, email and/or website address for the person or organization providing the information.
Where a parent’s income is from non-taxable sources, the parent is required to provide:
- A detailed letter from the agency, government, or organization providing the income received during 2012.
- Letter must include the name, address, phone number, email and/or website address for the person or organization providing the information.
Where providing documentation for foreign or non-taxable income outlined above is not possible, an affidavit from the parent(s) stating their gross income earned during 2012 from a foreign or non-taxable source and stating reasons for not providing documentation noted above.
Parental Income Earned on First Nations Reserve
Employment income is exempt from income tax under paragraph 81(1)(a) of the Income Tax Act and section 87 of the Indian Act if the income is situated on a reserve.
If a parent is a Status Indian who has earned all of his or her 2012 income on a First Nations Reserve, the parent is not expected to file a tax return before the student can be considered for the OTG.
- A letter or documentation from the parent’s employer indicating the amount of the income earned and that it was earned on a First Nations Reserve.
- Documentation must include the name, address, phone number, email and/or website address for the person or organization providing the information.
- If submitting such documentation is not possible (e.g., the parent earned no income), the student would be required to submit an affidavit from the parent stating their gross income and outlining the reasons why providing documentation was not possible.
- If the combined gross parental income is under $160,000, the parental income verification requirement will be satisfied.