Artist Grant income T4A box 105 incorrectly exempted

[artist_problems]

I need to claim income amounts from an artists project grant on a T4A - Box 105 - and have the remaining amount after expenses and the 500$ exemption appear on line 13010.

If I understand correctly, these are taxable Federally but not provincially (Quebec), and therefore need to appear on line 13010.

When I look at the Federal Worksheet, I see the software is exempting all the remaining amounts of my artist grant (my income), after expenses, rather than only the 500$ allowance.

Could it be because I also was a part-time student (9 months) and also received a training grant (T4A - box 105, with T2022 Tuition slips) that the software is exempting everything (several thousand, not something that could be overridden simply by the 500$ or my Federal training credit)?

How do I work around this?

Do I need to declare the income elsewhere, as I would for T4A - box 048 - self-employed income amounts?

How then do I avoid having QC tax these amounts the same as self-employment income?

[Geo123]

Hello artist_problems,

If you received your scholarship or bursaries after completing all your courses, have you received a T4A slip with an amount in Box 105?

If you are a Quebec resident, have you also received an RL-1 with an amount in box O, and the code RB?

If you answer "Yes" to these questions, please follow the steps below:

1. On the "Left side menu on the Interview tab" select the "Interview setup".

2. On the screen that appears on the right, go to the "Pension" group, check the box "Pension income, others income and split pension income (T4A, T4A(OAS), T4A(P), T4A-RCA, T4RSP, T4RIF, T1032)", and click "Next" at the bottom of the page.

3. Return to the "Left side menu on the Interview tab" and select "Pension income T4A".

4. On the page appearing to your right, click on the plus sign "+" icon to the right of the line "T4A - Pension, retirement, annuity and other income".

5. On the page that appears, scroll down to the line "Footnotes relating to specific T-slip entries and Box 135 (RL-2, Box 235)".

6. From the drop-down menu, choose "RL-1 (O) code RB - Scholarship, bursaries, prizes" and in the field to your right, enter the amount shown in Box 105 of the T4A.

The amount will not be carried on line 13010 of the federal return.

However, for residents of Quebec, you must follow the procedure below regarding Box O of the RL-1, Box O:

1. Again, on the page "T4A - Pension, Retirement, Annuity and Other income", go to the line "Other Information (click on the triangle to see the list of choices)" in the center of the page.

2. Then, in the drop-down list, choose "(105) Scholarships, bursaries, fellowship" and in the box to the right, enter $ 0.00 for the federal and click on the icon of the "Maple Leaf" to open a field for Quebec and enter the amount in Box O of the RL-1.

This amount will be carried over on line 154 of the Quebec return with code 01 at line 153.

The amount will also be carried over on line 275 of the Quebec return.

Subsequently, the program will deduct the amount on line 295 of the Quebec return.

The amount on line 275 is important, considering that Quebec takes the family income into account for certain credits, especially those provided under Schedule B.