Is PhD stipend from a research grant taxable?

[sue_in]

I have received a partial tuition fee waiver and a yearly funding for PhD. The funding will come from the professor through a research grant. Is it taxable? Someone says it will fall in the 15% bracket as its not considered a scholarship. I couldn't get a clear picture after searching on net. Please shed some light on this folks

 

[Azsereth]

http://www.cra-arc.gc.ca/E/pub/tp/it75r4/it75r4-e.html#P56_8869

Paragraphs 11-13 should give you an idea of whether it's treated as a scholarship or research grant for tax purposes (depending on the primary purpose of the funding).

If it's scholarship and it was received in regards to full-time education, then it should be tax-free. If it's a research grant then the net difference between the research grant and the total expenses incurred to perform the research is taxable (living expenses are not considered expenses incurred for purposes of the research).

 

[sue_in]

http://www.cra-arc.gc.ca/E/pub/tp/it75r4/it75r4-e.html#P56_8869

Paragraphs 11-13 should give you an idea of whether it's treated as a scholarship or research grant for tax purposes (depending on the primary purpose of the funding).

If it's scholarship and it was received in regards to full-time education, then it should be tax-free. If it's a research grant then the net difference between the research grant and the total expenses incurred to perform the research is taxable (living expenses are not considered expenses incurred for purposes of the research).

Thanks for the info and links. +1 to you mate.

In the financial assistance document, its mentioned that "Your professor <NAME> gives you an annual financial assistance of <AMOUNT> starting from <DATE> unless you have any other scholarship. It will be renewed next year if your studies and research progress satisfactorily" (translated from French) I don't know what this will fall under. And I cannot definitely understand the gibberish jargon on the taxes document Its like reading the human DNA code But thanks anyway.

I also mailed the university. They said that thy are not tax experts, but it will mostly be tax free. They also advised me to atend a tax information session to be held in University in winter. I think I'll attend that to know more.