At T4A slip page, if you enter an amount in Box105, you must also fill in another box named Box105E(next to Box105, not on your slip).
The purpose of Box105E is to provide a chance for you to identify the tax-exempt part of Box105 because part or all of your Box105 might be non-taxable.
You need to find out the correct amount yourself to avoid tax.
How to use it?
- If the full amount in Box105 is tax-exempt, enter in Box105E the same amount as in Box105. This is usually the case for full time students.
- If part of Box105 is tax-exempt, enter it in Box105E. This is usually the case for part time students.
- If the full amount in Box105 is taxable, still enter 0.01 in Box105E to let the system know it.
Not sure how much of Box105 is non-taxable?
See CRA guide on Scholarship Exemption.
Box 104, 106 and 107 needs to be entered in a similar fashion.