Easy Tax question about scholarship.

TheDamned

New member
Hi,

I do my own tax.
I use ImpotRapide, the online version, been using it for years without any problems.

I have a question about scholarship, I got a T4A and a Releve 1 Case O for it.
Both has the same amount on it altough I received this scholarship from the "pret et bourse du québec".

That said, If I add my scholarship into my tax, i adds up two times the scholarship and i end up paying even more taxes!
i.e.: I got 45k salary, got 1k scholarship from QC gov.
I enter the 1k scholarship in the federal and provincial form and my revenue is up to 45k + 2 x 1k = 47k! Wich is not true since I received only 1k so it should be 46k.

How do I deal with this ?

Thanks alot, rep will be given!
 
well if you ad 1k scholarship while making 45k it the very least that you pay it back at the end of the year.
 
it was random numbers, i did not make 45k nor had 1k in scholarship.

still, because of the scolarship I pay more tax since it adds up 2 * (scholarship amount) to my total income.
It's not true since it's only 1 * (scholarship amount) and some tax expert say scholarship are taxable others not... i dont know who to trust.
 
Scholarships aren't part of your income if related to your field of study as of 2007. Im almost 100% sure, I would double check just in case.
 
UPDATE: from the CRA

For 2007 and subsequent years

Elementary and secondary school awards are not taxable and are not subject to the requirement that they be eligible for the education amount.
For 2010 and subsequent years

The 2010 Budget clarifies that the scholarship exemption will be limited to the extent that the award was intended to support the student's enrolment in the program. To determine what portion of your award was intended to support your enrolment, you should consider such factors as:

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

If you can only claim the part-time education amount for a program, the scholarship exemption will be limited to the tuition fees and costs incurred for program-related materials. As you are also eligible for the basic scholarship exemption of $500, refer to the chart to calculate the portion of
 
Does your your releve 1 have an amount in box O with a code RB in the code (case O) box? If so its not taxable, you just add it on line 154 as an inclusion and then added on line 295 as a deduction on the TP1. As for federal if you are eligible for the education amount (to be eligible you need to receive a T2202A from your school) you dont need to add it anywhere on the T1. If you are not eligible for the education amount you must add the gross amount of the scholarship minus 500$, for example if your bursary is 2000$ you only add 1500$ (2000$-500$) on line 130 of the T1.
 
UPDATE: from the CRA

For 2007 and subsequent years

Elementary and secondary school awards are not taxable and are not subject to the requirement that they be eligible for the education amount.
For 2010 and subsequent years

The 2010 Budget clarifies that the scholarship exemption will be limited to the extent that the award was intended to support the student's enrolment in the program. To determine what portion of your award was intended to support your enrolment, you should consider such factors as:

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

If you can only claim the part-time education amount for a program, the scholarship exemption will be limited to the tuition fees and costs incurred for program-related materials. As you are also eligible for the basic scholarship exemption of $500, refer to the chart to calculate the portion of

Thanks but still unclear.


Does your your releve 1 have an amount in box O with a code RB in the code (case O) box? If so its not taxable, you just add it on line 154 as an inclusion and then added on line 295 as a deduction on the TP1. As for federal if you are eligible for the education amount (to be eligible you need to receive a T2202A from your school) you dont need to add it anywhere on the T1. If you are not eligible for the education amount you must add the gross amount of the scholarship minus 500$, for example if your bursary is 2000$ you only add 1500$ (2000$-500$) on line 130 of the T1.

Thanked and inboxed.
 
Back
Top