Is the scholarship income in T4A box 105 taxable, and how much goes on line 13010?
T4A box 105 scholarships are usually tax free: for 2025 and 2026, the full award is exempt if the student was a full time qualifying student in the award year, the year before or the year after. Part time students exempt fees and program materials plus $500, everyone else just $500, and the taxable rest goes on line 13010.
How much of a box 105 award is taxable in each situation?
Box 105 (code 105 in the Other information area of the T4A) holds scholarships, fellowships, bursaries and artists' project grants, and the recipient reports only the taxable part on line 13010 canada.ca. The exemption comes from subsection 56(3) of the Income Tax Act, and the amount it shelters depends on the student's enrolment
laws-lois.justice.gc.ca.
| Recipient's situation | Exempt part | Taxable part goes to |
|---|---|---|
| Elementary or secondary school award | All of it | Nothing to report |
| Full time qualifying student in the award year, the year before or the year after | All of it, to the extent the award supports the enrolment | Line 13010, only for any excess |
| Part time student in a specified educational program | Fees and program materials, plus up to $500 | Line 13010 |
| Part time student who qualifies for the disability tax credit or has a certified impairment | All of it (treated as full time) | Nothing to report |
| Not a qualifying student (program under three weeks, postdoctoral fellow) | $500 | Line 13010 |
| Artists' project grant | Expenses to meet the grant's conditions, plus any unused part of the $500 | Line 13010 |
The figures above apply for both 2025 and 2026. The $500 basic exemption is written into paragraph 56(3)(c) as a flat amount, so it doesn't move with indexing laws-lois.justice.gc.ca. The CRA's student guide for 2025 is the current edition as of October 2026
canada.ca.
When does a full time student keep the whole award tax free?
The award must be received in connection with enrolment in a program where the student is a qualifying student in the year, the preceding year or the following year laws-lois.justice.gc.ca. So a bursary paid in December 2025 for a program that starts in January 2026 can be fully exempt on the 2025 return. The guide gives the same three year window: received in 2025 for a program where the student is a full time qualifying student for 2024, 2025 or 2026
canada.ca.
A qualifying educational program lasts at least three consecutive weeks with at least 10 hours a week of courses or work, and a program that consists mainly of research only qualifies if it leads to a college or CEGEP diploma or a bachelor's, master's or doctoral degree laws-lois.justice.gc.ca. The school, not your client, decides whether the student is full time or part time, and thesis research time counts toward the 10 hours
canada.ca.
Two limits catch accountants. First, subsection 56(3.1) exempts an award only to the extent it's reasonable to conclude it was meant to support the enrolment, looking at its terms, the program's length and the period it covers laws-lois.justice.gc.ca. The CRA generally accepts that link unless the award significantly exceeds tuition, living and other program costs
canada.ca. Second, a postdoctoral fellowship is not a qualifying program, so a postdoc gets only the $500
canada.ca.
How much of a $3,000 bursary is taxable for a part time student?
Your client studies part time and received a $3,000 bursary for the program. Tuition paid to the school plus required program materials came to $1,800. The part time limit in paragraph 56(3.1)(b) caps the enrolment exemption at fees and program materials, and the $500 basic exemption then applies to what's left laws-lois.justice.gc.ca. The CRA's chart runs it like this
canada.ca:
| Chart line | Arithmetic | Result |
|---|---|---|
| Line 1: part time awards received | $3,000 | |
| Line 2: fees plus program materials | $1,800 | |
| Line 3: lesser of lines 1 and 2 | Lesser of $3,000 and $1,800 | $1,800 |
| Line 4: line 1 minus line 2 | $3,000 minus $1,800 | $1,200 |
| Line 6: lesser of line 4 and $500 | Lesser of $1,200 and $500 | $500 |
| Line 7: total scholarship exemption | $1,800 plus $500 | $2,300 |
| Line 10: amount for line 13010 | $3,000 minus $2,300 | $700 |
At the 14% lowest federal rate for 2026, that $700 is worth at most $98 of federal tax, and often nothing once the student's own credits apply. Fees and materials used for an exemption in an earlier year can't be counted again canada.ca.
The part time limit doesn't apply if the student qualifies for the disability tax credit, or a qualified practitioner certifies in writing that an impairment keeps them from studying full time. Section 118.6(3) then reads "full time student" as "student", and the whole award can be exempt laws-lois.justice.gc.ca. A student who isn't a qualifying student at all, say in a two week course, exempts only $500: a $2,000 award puts $1,500 on line 13010
canada.ca.
Which T4A codes look like box 105 but follow other rules?
Research grants and apprenticeship grants don't get the scholarship exemption at all. Check the code on the slip before you enter anything canada.ca.
| T4A code | What it is | Where it goes | Exemption |
|---|---|---|---|
| 105 | Scholarships, fellowships, bursaries, artists' project grants | Line 13010 (taxable part only) | Scholarship exemption |
| 105 plus 210 | Postdoctoral fellowship (210 is already inside 105) | Line 13010 | $500 only |
| 104 | Research grants | Line 10400, net of research expenses | None; expenses only |
| 130 | Apprenticeship incentive and completion grants | Line 13000 | None |
| 042 | RESP educational assistance payments | Line 13000 | None |
A research grant is income to the extent it exceeds the expenses of the research under paragraph 56(1)(o), and the scholarship exemption never applies to it laws-lois.justice.gc.ca. Your client deducts assistant wages, supplies, lab charges and travel away from home, but not personal living costs or reimbursed amounts, and the expenses can't exceed the grant
canada.ca. Payers report it under code 104, separate from code 105
canada.ca.
Apprenticeship grants are taxable in full on line 13000 canada.ca. The 2025 student guide still tells apprentices to report them from box 105, while the payer instructions use code 130
canada.ca. Whatever box the grant lands in, it goes on line 13000 with no exemption
canada.ca. RESP payments are covered on the RESP withdrawal page.
How are artists' project grants and employer tuition waivers treated?
An artists' project grant is exempt up to the expenses your client incurred in the year to meet the grant's conditions, capped at the grant itself. Personal living costs at home, reimbursed amounts and costs deductible elsewhere don't count, though travel, meals and lodging while away for the project do laws-lois.justice.gc.ca. Any unused part of the $500 then applies. On a $6,000 grant with $2,400 of eligible expenses, the exemption is $2,400 plus $500, and $3,100 goes on line 13010
canada.ca.
Free or reduced tuition for an employee's child is usually a scholarship, not an employment benefit, when the employer deals at arm's length and the employee's pay wasn't reduced to fund it. It goes on a T4A in the child's name, and the 56(3) exemption can apply canada.ca. If the employer doesn't deal at arm's length with the employee, the value is generally employment income under paragraph 6(1)(a), and a benefit given because of a shareholding is taxed under subsection 15(1) with no deduction for the corporation
canada.ca. See the taxable benefits page for the employment side.
Sources
Does a fully exempt scholarship go anywhere on the return?
No. Only the taxable part goes on line 13010, so a fully exempt award leaves that line blank, and your client keeps the supporting documents in case the CRA asks canada.ca. The payer still reports the full award on the T4A, because the recipient, not the payer, works out the exemption
canada.ca.
Can a student deduct moving expenses from a box 105 award?
Only from the taxable part. Moving to attend a post secondary school is deductible just against taxable scholarships, fellowships, bursaries, certain prizes and research grants, and unused amounts carry forward canada.ca. A fully exempt award leaves nothing to deduct against, as the moving expenses page explains.
Is the $500 basic exemption higher for 2026?
No. Paragraph 56(3)(c) sets it at the lesser of $500 and the awards left after the enrolment and artists' exemptions, and that $500 is a fixed figure in the Act laws-lois.justice.gc.ca. It is one $500 per year in total, not $500 per slip
canada.ca.
Where does the taxable part of box 105 sit on the return?
On line 13010, which is a scholarship line under the line 13000 other income heading. The line 13000 page covers the other amounts that land there, and the tuition transfer page covers the credit side of the same student's return.
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.