International Students & Income Tax: Scholarships, fellowships, and bursaries

Welcome to the segment called Scholarships, fellowships,
and bursaries, part of the International Students and Income Tax video. This segment mentions links where you can get
more information. You can find all these links in the Related links
for this segment. With me is Nicole Bélanger. Welcome Nicole. Thank you, Sarah. So are school awards, such as scholarships and bursaries, considered income? Elementary and secondary school
scholarships and bursaries are not considered income,
and are not taxable. Post-secondary
scholarships, fellowships, and bursaries are generally not
taxable if you receive them for your enrolment in a
program that entitles you to claim the full-time
education amount. Post-doctoral fellowships, on
the other hand, are taxable. What is the education amount, and are all international
students eligible? The education amount is a fixed
amount based on the number of full-time and part-time
months that a student is attending a
post-secondary institution. If you are an international
student and are considered a resident for tax purposes, you
can claim the education amount. If you’re a non-resident, you
will only be eligible for the education amount if 90%
or more of your income for the year is from
Canadian sources. So, if I am not eligible
for the education amount, will I be subject to tax on the
full value of the scholarship? Not quite. If you’re not eligible
for the education amount, you might be subject to tax on
the part of your scholarship, fellowship, or bursaries
that is more than $500. The first $500 is the basic
scholarship exemption. Enter only the amount that is
more than $500 on line 130 of your income tax
and benefit return. You will find more information
on how to calculate the scholarship exemption
amount in the CRA video series called Canadian Students
and Income Tax. The CRA’s income tax folio
S1-F2-C3, Scholarships, Research Grants and Other
Education Assistance, and pamphlet P105,
Students and Income Tax both contain information
on this topic. Let’s say I’m an
international student, I’ve received a scholarship, and I can claim the
education amount. Do I still have to
report my scholarship? No. Since you’re entitled
to the education amount, your scholarship is not taxable. Do tax treaties provide any
deductions for scholarships, fellowships, and bursaries? Yes, some countries, like China,
have an article in their tax treaty with
Canada that pertains to scholarships,
fellowships, and bursaries. What other types of
relief do tax treaties provide for students? In most cases, if you were a
resident of a treaty country such as China immediately before
visiting Canada and are in Canada only to
study, then, generally, any payments you receive for
your maintenance, education, or training are not
taxable in Canada. However, if you decide to get
a job while you’re in Canada, this provision may
no longer apply. Only certain countries
like China have this provision in their treaty. Review your country’s tax
treaty to find out more about the tax relief provisions
that are available to you. My country has a tax
treaty with Canada. Where would I report any
scholarship, bursary, or fellowship
income on my return? Report this income on line 130
and claim the treaty deduction when it applies on line 256. How do I find out about
my country’s tax treaty? Tax treaties can be found
at When you review your
country’s tax treaty, look at article 19
where information about students is usually found. I’ve heard that tax treaties
can be difficult to read. Where can I call to get help
understanding the tax treaty? For more information, contact the International Tax
Services Office. The address and telephone
numbers are on the CRA website. Thank you, Nicole. This concludes the segment
called Scholarships, fellowships,
and bursaries, part of the CRA’s International Students and Income Tax video. Thank you for watching.

You May Also Like

About the Author: Oren Garnes

Leave a Reply

Your email address will not be published. Required fields are marked *