In most cases, grants and bursaries are considered taxable income.
Unless it’s a prescribed prize…
Prescribed prizes are defined as “any prize that is recognized by the general public and that is awarded for meritorious achievement in the arts, the sciences or service to the public.”
So if you win an award, the amount of the prize won’t have to be included in your income. It doesn’t have to be a nationally known award, either many community service awards would fit the criteria too.
T4A – Box 105 Scholarships, bursaries, fellowships, artists’ project grants, and prizes
As requested by Canada Revenue Agency (CRA), we enter all grants in box 105 of the T4A slips. Box 105 is described as follows on the T4A: “Scholarships, bursaries, fellowships, artists’ project grants, and prizes”.
It should be recorded on line 130 of the Tax returns.
