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

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 producing a literary, dramatic, musical, or artistic work.

Note
If the scholarships, fellowships and bursaries you received do not include artists’ project grants, then the following applies.

The full amount of scholarships, fellowships, or bursaries that are received by you as a student with respect to your enrolment in a program that entitles you to claim the education amount are not taxable and are no longer reported as income on your tax return.

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

Note
For 2007 and subsequent years, elementary and secondary school scholarships and bursaries are not taxable and are not subject to the requirement that they be eligible for the education amount.

Artists' project grants

If you received an artists’ project grant, whether separately from or in addition to other scholarship income, that you used in producing a literary, dramatic, musical, or artistic work (other than a grant received for work completed as part of a business or employment), you may claim the scholarship exemption to reduce the total amount that must be included in your income as scholarship income (including artists’ project grants).

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

• the total of all scholarships, grants or bursaries you received that are related to a program of study for which you are able to claim the education tax credit;
• 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 described below); 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 scholarships, fellowships, grants, and bursaries (including artists’ project grants) 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.

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

Questions and answers

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 2009 (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.

Completing your tax return

If you received scholarships, fellowships, or bursaries (see the special calculation for artist's project grants) 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
• Students and Income Tax pamphlet (P105)
• 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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