Line 130 - Scholarships, fellowships, bursaries, study grants, and artists' project grants (awards)

The total amount of the award (scholarship, fellowship, or bursary) that is received by you as a student with respect to your enrolment in a program that entitles you to claim the education amount qualifies for the scholarship exemption and is not reported as income on your tax return.

If you are not eligible for the full-time or part-time education amount, and have no artists' project grants, report only the part of the post-secondary award that is more than $500 on line 130.

Scholarship Exemption

The scholarship exemption is calculated by adding all of the following:

• the total of all awards you received that are related to a program of study for which you are able to claim the full-time education amount;
• the tuition fees and costs incurred for the program-related materials for a program of study for which you are able to claim the part-time education amount;
• the total of all amounts, where each amount is the lesser of each artists' project grant you received and the expenses associated with that grant (other than the ineligible expenses); and
• the lesser of $500 and the total of all scholarships, grants and bursaries that you received (including artists' project grants) that exceeds the amounts described in the first two bullets added together.
  

You have to include in your income for the year the total of all your awards that is greater than your scholarship exemption as determined above.

Note that when determining your expenses, you cannot claim:

• personal living expenses while at your usual place of residence;
• expenses for which you can be reimbursed; or
• expenses that are otherwise deductible when you calculate your income for the year.
  

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.

A post-secondary program that consists principally of research is eligible for the education amount, and the scholarship exemption, only if it leads to a college or CEGEP diploma, or a bachelor, masters or doctoral degree (or an equivalent degree). Accordingly, post-doctoral fellowships is taxable.

An amount received in connection with an educational program for which the education amount can be claimed is eligible for the scholarship exemption only to the extent it is reasonable to conclude that the scholarship income is intended to support the student's enrolment in the program taking into account all the circumstances including:

• the duration of the program;
• any terms and conditions that apply to the amount; and
• the period for which support is intended to be provided by the amount.

For part-time students the scholarship exemption is limited to tuition fees and costs and program related materials, except if the part-time program is undertaken by a student entitled to the Disability Tax Credit or a student who cannot be enrolled on a full-time basis because of a mental or physical impairment.

To calculate the amount of your scholarship, fellowship, and bursary income that you must enter on line 130 of your return, see Part-time education amount.

For more information, see IT75, Scholarships, Fellowships, Bursaries, Prizes, Research Grants and Financial Assistance.

Example 1
I have an amount in box 105 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 2010 (box 105 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.

Example 2
I have a couple of T4A slips totalling $5,000 for some artists' project 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 2010 (box 105 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

You need to complete and submit Line 2 of Schedule 11 for the final calculation to be entered on your income tax return. If you received scholarships, fellowships, or bursaries and are not entitled to the education amount in respect of these amounts, enter on line 130 the part of these amounts that is more than $500.

Forms and publications

• General Income Tax and Benefit Guide
• P105, Students and Income Tax
• IT75, 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

Related topics

• Students
• Line 323 - Tuition, education, and textbook amounts
• Line 104 - Other employment income

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