On your Quest account, you may have seen the tax form T4A. This form has information regarding any scholarships, fellowships, bursaries, or grants received during the year under box 105.
If you are enrolled as a full-time student at a Canadian university for any of 2021, 2022 or 2023 then any amount received from scholarship, fellowships, bursaries, or grants are exempt from tax. If you qualify as a part-time student, the exemption is equal to the tuition paid plus the cost of program-related materials. For example, the president’s scholarship that many of us received upon entrance from the University of Waterloo is not taxable. The grant portion of OSAP is also non-taxable.
A takeaway from this tax tip is to keep a look out for scholarships, fellowships, bursaries, or grants as it is a great way to fund your education without increasing your taxable income!
Note also that when filing your 2022 return, you need to also retrieve the T2202A Tuition and Enrolment Certificate form for your tuition tax credit and note that amounts included in Box 42 of a T4A relate to RESP EAP withdrawals that will be taxable on your return.
- Stefania, Young Tax Professional