Income From Scholarships and Awards - Small businessess from 1 to 80 employees outsource your payroll management to us and let us worry about your payroll processing.
RSS Follow Become a Fan

Delivered by FeedBurner

Recent Posts

Tax changes to expect when you’re expecting
2016 Tax Tips for 2015 Filing Year
From Proprietorship to Corporation - When is the Best Time to Incorporate?
Tax Specialists Brief your Clients About CRA Fraud And E-Mail Scams
Bank of Canada cuts rates again

Most Popular Posts

Help your teenager build credit responsibly
Being an Executor of an Estate
Student Line of Credit
Principal Residence Exemption


aliko nutrition store- isotonix
aliko payroll services
canada revenue news and videos
canadian news
Cross border Tax
Disability awareness and Benefits for disabled
estate planning
Home Car Insurance
Income Splitting Strategies in Retirement
kids and money -set your children up for financial success
life insurance
on line safety tips
online safety tips
Real Estate - Investments / Retirement
Retirement planning
Save your money
small business planning
Tax Information for Students
tax news
tax planning
Tech news


January 2016
July 2015
May 2015
April 2015
February 2015
December 2014
November 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013

powered by


Income From Scholarships and Awards

Line 130
 Income From Scholarships and Awards
Income Tax Act s. 56(1)(n), 56(3)For all provinces and territories except Québec, starting with the 2006 taxation year, scholarship, bursary and fellowship income is fully exempt from tax when the income is received in connection with a program for which the student will get an education amount tax credit.  The income is not reported on the tax return.If you are not eligible to claim the education amount, then only the first $500 of awards is tax free.  Amounts received in excess of $500 are reported on line 130 of your tax return. 
 Taxable amounts would be reported in the Other Income line in the Canadian Income Tax Calculator.Starting with the 2007 tax year, when you receive a scholarship, bursary, or tuition for post-secondary education from the employer of a family member, you will receive a T4A slip from the employer.  Previously, this income was taxable to the employee instead of to the employee's family member who received the income.  When scholarships, bursaries, or tuition are provided for elementary or secondary school, the fair market value (FMV) of these benefits are still a taxable benefit to the employee. Québec studentsQuébec students should enter the scholarship, bursary or other financial assistance amount from box O of the RL-1 slip on Line 154 of the Québec personal income tax return.  These amounts will be identified with the code RB in the "Code (case O)" box of the RL-1 slip.  Note that you can claim a deduction of the same amount on line 295.  See Scholarships and Bursaries on the Revenu Québec website topic
Line 154 - Other Income.  In the Québec Income Tax Calculator, the scholarship/bursary amount would be entered in Other Income - QC and again in Other Deductions - QC.  For amounts that are taxable federally, the amount would also be entered in Other Income - Federal.
Federal 2010 Budget ChangesBudget measures implemented:clarification that post-doctoral fellowships will be taxable.  A post-secondary program consisting primarily of research will only be eligible for the education tax credit and the scholarship exemption if it leads to a college or CEGEP diploma, or a bachelor, masters or doctoral degree or amount will be eligible for the scholarship exemption only to the extent that it is received in connection with enrolment in an eligible educational program for the duration of the period of study related to the scholarship.
the scholarship exemption will be limited, in the case of part-time programs, to the amount of tuition paid for the program plus the costs of program-related materials.  There would be an exception to this for a student entitled to the disability tax credit, or a student whose medical or physical impairment prevents them from being enrolled on a full-time basis.These measures apply to the 2010 and subsequent taxation years.

0 Comments to Income From Scholarships and Awards :

Comments RSS

Add a Comment

Your Name:
Email Address: (Required)
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment