Scholarships and bursaries are amounts paid or benefits given to students to enable them to pursue their education.
Fellowships are similar to scholarships and bursaries in that they are amounts paid or benefits given to persons to enable them to advance their education. The recipient is usually a graduate student and the payer is normally a university, charity, or similar body.
An artist's project grant is a scholarship, fellowship, bursary or prize used in producting a literary, dramatic, musical, or artistic work.
Previously, if you received any amounts (other than an artist's project grant) for a program for which you could claim the education amount, you totalled the amounts received (from box 28 of your T4A, Statement of Pension, Retirement, Annuity and Other Income slips) and reported the amount that exceeded your $3,000 exemption.
The full amount of scholarships, fellowships, or bursaries are not taxable and are no longer reported as income on your tax return. The scholarships, fellowships, or bursaries must be received by you as a student with respect to your enrolment in a program that entitles you to claim the education amount. If you are not eligible for the education amount, report on line 130 only the amount that is more than $500.
If you received an artist's project grant that you used in producing a literary, dramatic, musical, or artistic work, you can subtract a $500 exemption or your expenses, whichever you prefer. If you claim expenses, attach a list of them to your paper return. However, the expenses you claim cannot be more than the grant and cannot include:
- personal living expenses while you were at your usual place of residence
- expenses for which you can be reimbursed
- expenses you can otherwise deduct on your tax return.
Total all the amounts you received in the year (from box 28 of your T4A slips) and report the amount that exceeds your exemption (see above) or your expenses on line 130 of your return.
Prizes and awards you received as a benefit from your employment or in connection with a business are not eligible for the $500 tax-free amount.
If you received a research grant, see line 104 - Other employment income.
For more information, see IT75R4, Scholarships, Fellowships, Bursaries, Prizes, Research Grants and Financial Assistance.
Frequently asked questions
I have an amount in box 28 of my T4A slip from a university. I was not entitled to the education amount. Do I have to report this income on my return?
Yes. Total all the amounts you received in 2006 (box 28 of your T4A slips). Since you cannot claim the education amount, report only the amount that is more than $500 on line 130 of your return.
I have a couple of T4A slips totalling $5000 for some artist grants I received. Do I have to claim the whole amount as income this year?
No. You can claim a $500 exemption or you can claim expenses incurred to produce a literary, dramatic, musical, or artistic work against this income. Total all the amounts you received in 2006 in box 28 of your T4A slips. Report on line 130 the amount that is more than $500 or your expenses, whichever you prefer.
Completing your tax return
If you received any amounts (other than an artist's project grant) for a program for which you could claim the education amount, do not report any of these amounts on line 130.
If you received an artist's project grant, or any amount for which you could not claim the education amount, enter the total of these amounts (box 28 of your T4A slips) less your allowable exemption or expenses, if any, on line 130.
Forms and publications
- General Income Tax and Benefit Guide
- Students and Income Tax pamphlet (P105)
- IT75R4, Scholarships, Fellowships, Bursaries, Prizes and Research Grants and Financial Assistance
- IT340R, Scholarships, Fellowships, Bursaries and Research grants - Forgivable loans, repayable awards...
- IT340RSR, Scholarships, Fellowships, Bursaries and Research grants - Forgivable loans, repayable awards and repayable employment income
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