Can someone clarify the scholarship exemption for full-time graduate study?

[baudrynoteboom]

I paid full-time tuition for all three terms of 2018 (in Ontario), and received some grant money from the University through the summer. CRA says "fellowships and bursaries received are not taxable up to the total amount required to support you in the program" but to me it's unclear how this is defined. The grant was more than the summer tuition, but a lot less than the annual tuition.

[TurboTaxLise]

Here are three links to help you understand how the grants and exemptions work from TurboTax Tips as well as how to report them on your tax return.

• When to Claim Bursary Grants - https://turbotax.intuit.ca/tips/when-to-claim-bursary-grants-5586
• Understanding Tuition Tax Credits - https://turbotax.intuit.ca/tips/understanding-tuition-tax-credits-6549
• Do I have to report scholarships and other academic awards on my return? - https://turbotax.community.intuit.ca/replies/2647691

Furthermore, as per the CRA - I quote "Full-time enrolment

Post-secondary school scholarships, fellowships, and bursaries are not taxable if you received them in 2018 for your enrolment in a program if you are considered a full-time qualifying student for 2017, 2018 or 2019.

The scholarship exemption will be limited to the extent that the award was intended to support the student's enrolment in the program. To determine what portion of your award was intended to support your enrolment, you should consider such factors as:

• the duration of the program
• any terms and conditions that apply to the award
• the period for which support is intended to be provided by the award"

More details here: https://bit.ly/2TdXjiX

[baudrynoteboom]

Thanks, but if I found the CRA information clear, I wouldn't have asked for clarification. It talks about what you should consider, but not HOW to consider those things. I paid over $9000 in tuition for the year, and received $5000 in funding (in box 105). When I read that page, the first paragraph seems a blanket statement that they're not taxable, but the second paragraph says it's limited, but then there's no useful information on HOW it's limited. It seems to me that my grant probably shouldn't be taxable, but Turbotax has only exempted the first $500 and I can't see anything in the tool to help the remainder or explain the exemption calculations.

[TurboTaxLise]

@baudrynoteboom - please go see the revised answer. Thank you.

[baudrynoteboom]

We're getting there, but there's still too many vague statements. I've read all three of those pages, and they still don't explain it. I'm not sure why it's so hard to find a quantitative explanation of this process. The first link refers to the "education amount" which was eliminated in 2017, and at other places there are remarks like 'subtract the amount required to support you' which seems completely subjective. I think I've been handling tuition credits ok through my grad studies, and I think I've got the T4A information in the right place (used the great automatic import from CRA). Turbotax appears to have applied the $500 exemption that it seems everyone gets, but beyond that, I'd like to understand what's going on.

[TurboTaxLise]

I can appreciate your concerns. I will suggest you get on the phone with one of our Tax Experts at Live & Assist - they will be able to explain with much more clarity.  Here is how to reach them: https://bit.ly/2U55yu9
Good luck!