Personal Finance

How to report OSAP loans on tax forms?

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  • Mar 1st, 2007 5:30 pm
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Sr. Member
Aug 14, 2006
737 posts
19 upvotes

How to report OSAP loans on tax forms?

We'll this is my first year in which I received a 1700.00 dollar loan from osap in may 2006.

Now I have not gotten and kind of t4 etc slip from osap.

Now I'm using studio tax and looking through I don't know where to report my income from this loan?

I know for student bursary's their is no tax so I don't report that 2000.00 dollars.

But for the OSAP loan where do I report it?

Can anyone help me?
15 replies
Deal Addict
Aug 16, 2005
1840 posts
80 upvotes
an osap loan is not considered income. you don't need to report it.

The bursary is considered income so you might actually have to report that. I'm not sure if the gov't changed the policies on reporting scholarships and bursaries. I just know in the past the bursaries came with a T slip.
Sr. Member
Jul 25, 2006
917 posts
44 upvotes
Hamilton
If you're paying any interest on your osap loan you'll want to record that beacaue it's a deduction. as for the bursary there is a threshold over which I believe it's taxed - best to check you may have to report it, but aren't taxed on it. (I'm not sure of all the rules because aparently I make to much to be eligible for any of this stuff!)
[OP]
Sr. Member
Aug 14, 2006
737 posts
19 upvotes
We'll from the cra site

Under proposed legislation, the full amount of scholarships, fellowships, or bursaries are not taxable and are no longer reported as income on your tax return. The scholarships, fellowships, or bursaries must be received by you as a student with respect to your enrolment in a program that entitles you to claim the education amount. If you are not eligible for the education amount, report on line 130 only the amount that is more than $500.

That means no more reporting it as income I guess.
Deal Addict
Feb 26, 2006
1876 posts
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Lizz__20 wrote:
Feb 21st, 2007 9:11 pm
If you're paying any interest on your osap loan you'll want to record that beacaue it's a deduction. as for the bursary there is a threshold over which I believe it's taxed - best to check you may have to report it, but aren't taxed on it. (I'm not sure of all the rules because aparently I make to much to be eligible for any of this stuff!)
disregard what this person wrote, lets not guess at answers

1) you obviously are in school, no need to worry about interest yet
2) osap is a loan that needs to be paid back, not money earned for doing work, no T4, nothing to report
3) bursary is considered income but not longer taxed (regardless of how much you make or made). use to have a 3k threshold but not anymore
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Member
Dec 23, 2006
266 posts
The key thing is this $1700 is borrowed money and will have to be repaid, so it is NOT an income and you don't need to report it.

For the $2000 bursary it is tax exempted (tax free) and you do not need to report it in income as well.

Since they are both not income, you won't be getting any T4 slip for the loan and bursary.
[OP]
Sr. Member
Aug 14, 2006
737 posts
19 upvotes
thanks alot for clarification..


based on your above info i just did the tax form using studio tax.......says i'm getting a 2600 dollar refund!!!!!!!!!

question to you guys.....my last job from sept 06 to dec o6 didn't send me a t4 slip yet and I know the cPP income and EI values because I have my last PAySTUB....

should i go ahead and do my tax's based on the last paystub or wait for t4....because the values on tv should be exactly the same right?
Sr. Member
Jul 25, 2006
917 posts
44 upvotes
Hamilton
ids748 wrote:
Feb 22nd, 2007 7:36 am
thanks alot for clarification..


based on your above info i just did the tax form using studio tax.......says i'm getting a 2600 dollar refund!!!!!!!!!

question to you guys.....my last job from sept 06 to dec o6 didn't send me a t4 slip yet and I know the cPP income and EI values because I have my last PAySTUB....

should i go ahead and do my tax's based on the last paystub or wait for t4....because the values on tv should be exactly the same right?

t4's don't need to be mailed until Feb 28 so it should come early March. I've recieved mine from 1 employer, but am still waiting on the other.
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Jan 22, 2005
1762 posts
Check the CCRA Website!
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Sep 30, 2003
3897 posts
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Toronto
Wait for the correct information.
And don't forget tuition & text credits.
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[OP]
Sr. Member
Aug 14, 2006
737 posts
19 upvotes
^^^you wnat proof i got proof.

I called the CRA last week clarifiying some things......Basically if you qualify for tuitition and education amounts you don't need to report the bursaries or anything up to any amount.

NOW the thing is you DO NOT REPORT OSAP LOANS as INCOME its a LOAN its non-employment income.

The cra told me you do not report loans as income since its OSAP.
You can however claim tax credits for interest paid on osap loans.
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Sep 4, 2003
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ids748 wrote:
Feb 28th, 2007 8:53 pm
^^^you wnat proof i got proof.

I called the CRA last week clarifiying some things......Basically if you qualify for tuitition and education amounts you don't need to report the bursaries or anything up to any amount.

NOW the thing is you DO NOT REPORT OSAP LOANS as INCOME its a LOAN its non-employment income.

The cra told me you do not report loans as income since its OSAP.
You can however claim tax credits for interest paid on osap loans.
Thank you.

I received some receipt/tax form from the University for my Millennium Bursary.
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Oct 24, 2006
246 posts
ids748 wrote:
Feb 28th, 2007 8:53 pm
^^^you wnat proof i got proof.

I called the CRA last week clarifiying some things......Basically if you qualify for tuitition and education amounts you don't need to report the bursaries or anything up to any amount.

NOW the thing is you DO NOT REPORT OSAP LOANS as INCOME its a LOAN its non-employment income.

The cra told me you do not report loans as income since its OSAP.
You can however claim tax credits for interest paid on osap loans.
THANKS a lot! I received T4A's for scholarships and on the back of each slip, it says to enter the amount onto line 130 but according to the new legislation, I don't have to. I was really confused.
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