Student Bursary and Scholarship Income, and the Textbook Tax Credit

Scholarship, fellowship, or bursary income received by a student is considered fully tax-exempt, provided the income is connected to a program that entitles the student to claim the education tax credit.  The education tax credit is available to students who are enrolled in qualifying post-secondary educational programs at designated educational institutions.  

For 2007, the exemption has been extended to scholarships, fellowships, and bursaries received in connection with an elementary or secondary school educational program.