Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Is scholarship income included in the definition of "earned income" in subsection 146(1) of the Act?
Position: No
Reasons: Scholarship income, as described in paragraph 56(1)(n), is not included in the definition of earned income for RRSP purposes.
XXXXXXXXXX 2001-009363
S. E. Thomson
July 20, 2001
Dear XXXXXXXXXX:
Re: Scholarship income as earned income for an RRSP
We have been asked to respond to the email that you sent to XXXXXXXXXX, on June 27, 2001 regarding your scholarship income. You have correctly pointed out that scholarship income is not included in the calculation of "earned income" for RRSP purposes.
Earned income, as defined in subsection 146(1) of the Income Tax Act (the "Act"), is used to calculate the amount of contributions that may be made to an RRSP. Included in the definition (inter alia) are income from an office or employment, and income from research grants as described in paragraph 56(1)(o) of the Act. Note that scholarship income as described in paragraph 56(1)(n) of the Act is not included in the definition. For more information on research grants and scholarships, please refer to Interpretation Bulletin IT-75R3, entitled Scholarships, Fellowships, Bursaries, Prizes and Research Grants, available on our website at www.ccra-adrc.gc.ca/formspubs/menu-e.html.
Although the Canada Customs and Revenue Agency (the "CCRA") is responsible for the administration of the income tax legislation, it is the Department of Finance that sets Canada's tax policy, and you may wish to pursue the matter with the Department of Finance. The general enquiries line of the Tax Policy Branch, Department of Finance is (613) 992-1573.
We trust that we have been of some assistance.
Yours truly,
Mickey Sarazin, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
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