Tax on SSHRC/NSERC

[af8877]

I'm doing my taxes and I'm a bit confused at how the SSHRC/NSERC educational adjustment works.

Since I'm a full time student (in the US), I can claim an educational amount (using TL11A).

But that means that I don't have to pay tax on the award, as

"The full amount of scholarships, fellowships, or bursaries that are received by you as a student with respect to your enrolment in a program that entitles you to claim the education amount are not taxable and are no longer reported as income on your tax return."

Am I missing something here?

I had thought you had to pay Canadian taxes on SSHRC awards?

[lewin]

In Canada all scholarships (including SSHRC) are tax free. The Conservatives implemented that policy a few years back. You should get a T4A listing the scholarship amounts, which are entered on your tax return but not counted as taxable income. I can't comment on whether there are any differences because you're filing from a U.S. school.

The tax situation for funded Canadian graduate students is pretty sweet. I took home about $35,000 last year and paid $0 tax. On top of that, I transferred $5000 in federal tax credits to my spouse (netting a $750 tax return) and carried forward about $14,000 in federal credits for future years (which should net another $2100 or so once I get a job). Three cheers for the socialist paradise

[Poppet]

Can you guys clarify something for me? How does a US student receive a SSHRC award? Aren't they only applicable in Canada? I'm confused.

[Ludwig von Dracula]

Can you guys clarify something for me? How does a US student receive a SSHRC award? Aren't they only applicable in Canada? I'm confused.

If you're a Canadian studying internationally, you can still receive a SSHRC award. At the doctoral level, you're only eligible for the $20,000 (for 4 years) award, rather than the $35,000 (for 3 years) award. At least, this is how I understand it.

Conversely, any Ph.D. student in Canada can receive SSHRC awards (of either type, I believe), whether a Canadian citizen or not.

[lewin]

If you're a Canadian studying internationally, you can still receive a SSHRC award. At the doctoral level, you're only eligible for the $20,000 (for 4 years) award, rather than the $35,000 (for 3 years) award. At least, this is how I understand it.

Conversely, any Ph.D. student in Canada can receive SSHRC awards (of either type, I believe), whether a Canadian citizen or not.

You have to be a citizen or permanent resident, at least according to the international students in my department.

You're right about the first part though, so long as you indicate on the form that you might be attending grad school out of the country.

[Poppet]

Ah, ok, but this is only for PhD students. That's why I was confused, I forgot that you guys were allowed to take your SSHRCs abroad. You are lucky!

[Ludwig von Dracula]

Yep. Thanks for the clarification, Lewin. The SSHRC website (specifically this page: http://www.sshrc-crsh.gc.ca/funding-financement/programs-programmes/fellowships/doctoral-doctorat-eng.aspx#astatus#astatus) confirms that you must be a permenent resident to be eligible for the doctoral award. And Master's awards are only tenable in Canada.

[lewin]

Yep. Thanks for the clarification, Lewin. The SSHRC website (specifically this page: http://www.sshrc-crsh.gc.ca/funding-financement/programs-programmes/fellowships/doctoral-doctorat-eng.aspx#astatus#astatus) confirms that you must be a permenent resident to be eligible for the doctoral award. And Master's awards are only tenable in Canada.

So weird that SSHRC has that "tenable in Canada" restriction because NSERC doesn't. I have a friend who took his MA NSERC to the U.S.

[packard]

In Canada all scholarships (including SSHRC) are tax free. The Conservatives implemented that policy a few years back. You should get a T4A listing the scholarship amounts, which are entered on your tax return but not counted as taxable income. I can't comment on whether there are any differences because you're filing from a U.S. school.

The tax situation for funded Canadian graduate students is pretty sweet. I took home about $35,000 last year and paid $0 tax. On top of that, I transferred $5000 in federal tax credits to my spouse (netting a $750 tax return) and carried forward about $14,000 in federal credits for future years (which should net another $2100 or so once I get a job). Three cheers for the socialist paradise

Hi, I'm doing my taxes from 2 years ago (a bit behind) and I'm wondering if you can clarify for me where the scholarship income comes off my taxable income? As of now I've declared it from my T4A but it's included in the tally for total income...

[Ludwig von Dracula]

Hi, I'm doing my taxes from 2 years ago (a bit behind) and I'm wondering if you can clarify for me where the scholarship income comes off my taxable income? As of now I've declared it from my T4A but it's included in the tally for total income...

Are you sure you entered it in the correct box? I recently started working on my taxes, and I think that even though it showed up in one of my income subtotals, the same amount was subtracted later on, leaving my scholarship out of the picture. Try using turbotax or whatever it's called now...you don't have to pay to use the program until it comes time to file, so you can use it to doublecheck your results.

[lewin]

Are you sure you entered it in the correct box? I recently started working on my taxes, and I think that even though it showed up in one of my income subtotals, the same amount was subtracted later on, leaving my scholarship out of the picture. Try using turbotax or whatever it's called now...you don't have to pay to use the program until it comes time to file, so you can use it to doublecheck your results.

Yes, pretty sure you've made a mistake somewhere. I checked my return and SSHRC income should NOT be included in total income. Here's the CRA guide for that part of the return, line 130. Make sure to enter it as box 105 from your T4A.

Disclaimer: I am not a tax expert, just a student who has been doing his own taxes. Buyer beware.

Edited March 26, 2011 by lewin00

[Ice Man]

I understand that there can be no tuition amount claimed if Nserc is paying that. How does one get credit for an education amount or textbooks amount since the university only sends out T2202As to students who pay tuition. Or can't one claim those amounts if you are on an NSERC scholarship?