Effective taxation year 2010, the tax exemption for postdoctoral fellowships has been eliminated; as a result, institutions can no longer issue T-2202A forms to Postdoctoral Fellows. The new regulation now restricts tax exemptions to scholarships awarded to PhD candidates and other formal degrees offered by universities.
The exact text is as follow: “Budget 2010 proposes to clarify that a post-secondary program that consists principally of research will be eligible for the Education Tax Credit, and the scholarship exemption, only if it leads to a college or CEGEP diploma, or a bachelor, masters or doctoral degree (or an equivalent degree). Accordingly, post-doctoral fellowships will be taxable.” (2010 Federal Budget, p. 349)
All Postdoctoral Fellows should familiarize themselves with the federal and provincial tax regulations applicable to their individual situations.