Federal (T1 Return) – Scholarship Exemption
- Full-time students: Scholarships, fellowships, or bursaries are non-taxable if enrolled in a qualifying educational program during the tax year, or in the year immediately before or after.
- Part-time students: Exemption limited to tuition and program-related material costs.
- Non-qualifying students: $500 exemption; amounts over $500 are taxable.
- Elementary/secondary school: Scholarships and bursaries are not taxable.
Quebec (TP-1 Return) – Scholarship Exemption
- Line 154: Report the total amount from Box O (code RB) of the RL-1 slip as Other Income, regardless of student status.
- Line 295: Deduct the portion of the scholarship that is exempt. For most full-time students, this will equal the amount reported on Line 154.
Example :
Aimé is full-time university student receives a $5,000 scholarship; federally, it appears in Box 105 of the T4A slip and is fully exempt (not reported on Line 13010), while provincially, it is reported on Line 154 of the TP-1 and claimed as a $5,000 deduction on Line 295, making it non-taxable.
How to do on TaxTron?
In the Income section, enter the amount from the T4A slip. Then, select 'Yes' to confirm an RL-2 slip was received, and choose 'full-time scholarship'.
Posted on 6 January 2026