Why are scholarships considered an income? Puts my sons income higher and risk not getting financial aid next year.

[TurboTaxJennifer · Accepted solution]

If your son is a full-time student, the scholarship income is not taxable and will not appear on his return. When entering the T4A for the scholarship, Box 105 has a few options to pick from. If he was/is a F/T student, choosing the F/T option for box 105 will correct the income entry.

[carrhall]

Thanks Jennifer.

[carrhall]

What about RESP that we used to pay for his program. This is claimed as an income correct?? Or do I have it in the wrong spot. I put it in 042

[TurboTaxJennifer]

He should have a slip for the RESP  income. Enter the amounts as they appear on the T4A (Box 42 is the taxable portion). Enter each slip individually.