In Canada, the T4A is a tax information slip used to report various types of income that may not be included on the T4 slip, which is more commonly associated with employment income. The T4A reports income from various sources, such as pensions, retirement income, annuities, self-employment income, and other types of income. A T4A slip identifies amounts paid during the calendar year for certain types of income from many different sources including self-employed commissions and RESP educational assistance payments.
When to issue
If you are a payer (such as an employer, a trustee, an estate executor/liquidator, an administrator, or a corporate director), you must issue a T4A slip if any of the following apply:
- You deducted tax from any payment
- If the payment is not included on the exceptions list, the total of all payments in the calendar year was more than $500 (under the CRA administrative policy)
Exceptions list:
What to report?
- Pension or superannuation
- Lump-sum payments
- Self-employed commissions
- Annuities
- Patronage allocations
- Registered education savings plan (RESP) accumulated income payments
- RESP educational assistance payments
- Fees or other amounts for services
- Income replacement payments made under the Veterans Well-being Act
- Research grants
- Payments from a registered disability savings plan (RDSP)
- Wage-loss replacement plan payments if you were not required to withhold Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums
- Death benefits
- Certain benefits paid to partnerships or shareholders
Important Notes to issuers:
– Report the amount of commissions you paid to an independent agent. Do not include GST/HST or provincial sales taxes in the amount reported in box 020.
– Report the amount of income tax you deducted from the recipient during the year. This includes the federal, provincial (except Quebec), and territorial taxes that apply.
– Report all amounts in Canadian dollars, even if they were paid in another currency.
Other important Boxes:
- Box 028) Other Income
Box 028 of the T4A is often used to report various types of income that don’t fit into specific categories. This could include fees, royalties, certain scholarships, and other sources of income. - Box 105) Scholarships, Fellowships, Bursaries
The T4A may include Box 105 to report certain types of educational income, such as scholarships, fellowships, or bursaries. - Box 48) Fees for Services
Report any fees or other amounts paid for services. Do not include GST/HST or PST in the amount reported in box 048. The CRA is currently not applying penalties for failure to report fees for services.
It’s important for individuals to carefully review their T4A forms and ensure that all income is accurately reported on their income tax returns. Like other tax slips, T4A forms are typically issued by the end of February, and the information is used by individuals to complete their income tax returns for the relevant tax year.
For more information about T4A and how to fill it check this CRA link.
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