Text Box: Scholarships, Bursaries and Research Grants Some students or scholars may get some kind of financial assistance to perform their study, research or academic activities. The assistance includes scholarships, fellowships, bursaries, study grants, research grants and artists’ project grants. For all of these income, a T4A is issued to every recipient before tax season starts. It is very important to treat every situation specifically, to make sure getting the maximum return without violating taxation rules. The specific situations are: 1. If the income is for assisting study, both of federal schedule 11 and provincial schedule 11 need to complete. Meanwhile, deduct $3,000 from the income. If the income is less than $3,000, you do not need to report it. 2. If the income is for assisting education related activities, but the recipient does not register any courses, $500 is allowed to be deducted from the income. 3. If the income is for assisting research, i.e. research grant, the recipient may deduct some expenses such as books, office expenses. The amount of expenses is based on receipts, and the expense amount cannot exceed the income. 4. If the income is artists’ project grant, you may deduct $500 or actual expenses. Which one to deduct, is optional. The amount of deduction cannot exceed the income. For international students, there are additional rules. Around 80 countries have income tax agreement with Canada. For the students come from the contracted countries, if their income is for supporting their education or training, the income is tax free. When fill in the tax form, a sentence needs to be written on right lines to show the reason of tax free. This special rule may save a student who come from a contracted country about $3,000 if his/her annual income is $20,000.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Text Box: Hope Canada accounting & taxation services 301 Spadina Avenue/North of Dundas St. W. 50 meters away from Royal Bank Telephone: 416 473 0091 416 214 2663 Contact: Harry Chen Accountant
 

 

 

 

 

 

 

 

 

 

 

 
 
 

1