Whether a stipend is taxed depends on what it pays for. Money that supports your studies as an enrolled student is usually covered by the scholarship exemption, while money paid for work (a TA or RA position, a residency, an internship) or to someone who isn’t enrolled, such as a post-doc, is taxable. Stipends sit with the other income-type guides in the taxable employment benefits directory ; for where graduate funding comes from, see the guide to graduate school funding .
Tax Treatment by Stipend Type Stipend Type Taxable? Reported On Notes Scholarship (full-time student) ❌ Exempt T4A Box 105 Must be enrolled in qualifying program Fellowship (full-time student) ❌ Exempt T4A Box 105 Same rules as scholarships Bursary (full-time student) ❌ Exempt T4A Box 105 Need-based: same tax treatment Scholarship (part-time student) Partially exempt ($500) T4A Box 105 Amount over $500 is taxable Post-doctoral fellowship ✅ Taxable T4A Box 105 or T4 Not enrolled as student: no exemption Research stipend (non-student) ✅ Taxable T4A Box 028 or T4 Employment or other income Artist/writer grant ✅ Taxable (with $500 exemption) T4A Box 028 Prescribed prize/grant rules Medical residency stipend ✅ Taxable T4 Treated as employment income Internship stipend ✅ Taxable T4 or T4A Employment income Volunteer stipend / honorarium ✅ Taxable T4A Box 028 Other income, unless truly nominal
The Scholarship Exemption Explained Who Qualifies Requirement Detail Enrollment status Full-time student (or part-time for $500 exemption) Educational institution Designated educational institution in Canada (or qualifying foreign institution) Program type Qualifying educational program (at least 3 consecutive weeks, 10+ hours/week) Type of payment Scholarship, fellowship, or bursary Connection to program Must be related to your program of study
What’s Exempt Situation Tax Treatment Full-time student, qualifying program 100% exempt Part-time student, qualifying program $500 exempt , rest taxableScholarship for non-qualifying program Fully taxable Payment for services (TA, RA employment) Fully taxable (this is employment income, not a scholarship)Living allowance portion (if separate) May be taxable : depends on how it’s structured
Education vs Employment Stipends Factor Education Stipend Employment Stipend Purpose Support studies Pay for work/services Enrolled as student Yes (required for exemption) Not necessarily Work required No specific work obligation Work or deliverables expected T slip T4A Box 105 T4 (or T4A Box 028) Tax treatment Exempt (if qualifying) Fully taxable CPP/EI deducted No Yes (if on T4) Tuition tax credit eligibleYes (claim separately) No connection
How to Report Stipends on Your Tax Return Tax-Exempt Scholarships Step Action 1 Receive T4A with amount in Box 105 2 Report the full amount on Line 13010 (Scholarships, fellowships, bursaries) 3 Claim the scholarship exemption on Line 13010 4 Net taxable amount = $0 (if full-time, qualifying program)
Taxable Stipends Step Action 1 Receive T4A (Box 028) or T4 2 If T4: Report as employment income on Line 10100 3 If T4A Box 028: Report on Line 13000 (Other Income) 4 The amount is taxed at your marginal rate, like other taxable employment benefits and income 5 If no CPP was deducted and it’s pensionable: may owe CPP on Schedule 8
Post-Doctoral Fellowships Factor Detail Tax status Fully taxable: no scholarship exemption Why no exemption Post-docs are typically not enrolled as students Reported on T4A Box 105 (but still taxable) or T4 if paid as employee CPP May apply: depends on employment relationship EI May apply if employed Deductions available Union dues, professional fees, moving expenses (if applicable) RRSP Contributions can offset taxable stipend income
Common Stipend Scenarios Scenario Taxable? Why Master’s student receives $25,000 fellowship ❌ Exempt Full-time student in qualifying program PhD student receives $30,000 scholarship + $5,000 TA pay Scholarship exempt; TA pay taxable TA work is employment, not scholarship Post-doc receives $45,000 fellowship ✅ Taxable Not enrolled as student Medical resident receives $60,000 salary ✅ Taxable Employment income Artist receives $10,000 Canada Council grant ✅ Taxable (with $500 exemption) Not enrolled as student: grant income Summer intern receives $8,000 stipend ✅ Taxable Payment for services rendered Exchange student receives $3,000 bursary ❌ Exempt Full-time student, qualifying program
Other Credits and Deductions for Stipend Recipients Item Who It Helps Tuition tax credit (T2202) Students with exempt stipends: carry forward or transfer RRSP contributions Post-docs and taxable stipend earners with contribution room Moving expenses Students or post-docs who moved for studies/work Allowable expenses Self-employed researchers: supplies, travel, conferences Filing a return even if exempt May generate GST/HST credit and a tuition carryforward
The tuition tax credit guide covers the T2202 slip and how unused amounts carry forward or transfer, and the moving expenses deduction covers when a move for studies can be claimed. Pay from a part-time job while studying is ordinary employment income, covered in the guide to working while in school . An RRSP deduction can offset taxable stipend income within your contribution room. Tips earned in a service job are another kind of income with their own reporting rules, explained in the guide to whether tips are taxable .
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