You’ll receive a T4A: Statement of Pension, Retirement, Annuity, and Other Income slip for payments from any of the following income sources:
- Pension, superannuation, or annuities
- Lump-sum payments
- Self-employed commissions
- Registered education savings plan (RESP) educational assistance payments or accumulated income payments (AIPs)
- Other income such as research grants, scholarships, medical travel assistance, and Registered Disability Savings Plan (RDSP) income
You can find a complete list of other income sources on the Canada Revenue Agency (CRA) website.
Generally, you’ll only receive a T4A slip from the payer of these income sources if the total of the payments was more than $500 in the year or if income tax was deducted from the payments.
Tax tip: If you received more than one T4A slip, be sure to report each one separately on your tax return.
If you were issued a T4A slip for member refunds or rebate amounts that you received from a cooperative such as the Federated Co-op Ltd. (FCL) or the Calgary Co-op, you’ll still need to enter these amounts on the T4A page in H&R Block’s tax software. Don’t worry, these amounts aren’t taxable if they were member refunds for personal-use consumer goods (like groceries, household items, gas, etc.).
Be sure to answer Yes to the following question on the T4A page, otherwise the amounts will be included in your income: Were the patronage allocations you entered in box 30 related to goods or services you consumed (personal purchases)?
Amounts in box 20 (self-employment commissions) and box 48 (fees for services) of a T4A slip are treated as self-employment income. These amounts should not include any GST/HST paid to you on commissions or fees for services.
Depending on whether you have business expenses or not, you’ll need to either complete the T2125 page in the tax software or provide additional information for your self-employment activities on the T4A page.
I have business expenses to claim
If you have an amount in box 20 and/or box 48 on your T4A slip and you have business expenses to claim for this income, you’ll need to complete the T2125: Statement of business or professional activities page in H&R Block’s tax software.
To add a T2125 page to your return:
- On the PREPARE tab, click the IN THIS SECTION icon.
- In the Self-employment income and expenses box, click the Add This Topic button.
- Click the EMPLOYMENT icon. You'll find yourself here:
- Under the BUSINESS AND SELF-EMPLOYMENT INCOME section, select the checkbox labelled Statement of business or professional activities (T2125) then click Continue.
- When you arrive at the Statement of business or professional activities (T2125) page, enter your information into the tax software.
If you don’t have any business expenses to claim for your self-employed income, you won’t need to complete the T2125 page in H&R Block’s tax software. Instead, select No in response to the question Do you have business expenses (advertising, meals, home office, etc.) to claim for the income you entered in box 20 or box 48?, and enter details related to your self-employment activities in the fields that appear.
While these questions are from the T2125/TP-80 form, the tax software has made it easy for you to complete only the necessary fields since you’re not claiming business expenses and capital cost allowance (CCA). These fields include your business name and number, main product or service, and the following:
- What type of income did you earn?: Your self-employment income can be from:
- Business income – income from any activity you do for a profit and includes sales, commissions, or fees
- Professional income – income that is from a profession that has a governing body (such as one for lawyers, professional engineers, etc.)
- Choose the industry code that most closely describes your main business activity: If more than one code applies to your business, enter the one that most closely describes your main business activity. You can type keywords (sales, bookkeeping, etc.) to find the industry code that most closely describes your main business activity or click here for a complete list of industry codes.
My T4A has an amount in box 30
Amounts in box 30 of your T4A slip are patronage allocations from a cooperative corporation, partnership, sole-proprietorship, or an ordinary corporation. These amounts were given to you as a customer for your patronage and can include payments made to you in cash or in kind, by a certificate of indebtedness, by issuing shares, a set-off, or in any other way.
Generally, these allocations are made to you in the same proportion as your patronage and are considered taxable income unless, these amounts were related to consumer goods or services that you purchased for your personal use.
If you enter an amount in box 40 of the T4A page, you'll be asked if you want the software to calculate the additional tax you have to pay on the accumulated income payments (AIPs) you received from an RESP. If you select:
- Yes: The software assumes you're the subscriber of the RESP and calculates the additional tax you have to pay
- No: You'll need to complete form T1172. You can find this under the OTHER icon on the PREPARE tab of the tax software
If you received research grants (box 104) in during the year, you’ll need to enter the total amount of expenses you paid in the year to carry out your research projects. Keep in mind, the expenses you report can’t be more than the research grant you received. You can claim the following allowable research expenses:
- salary paid to an assistant
- the cost of minor equipment and supplies
- lab charges and
- travelling expenses (including meals and lodging) you paid while travelling:
- between your home and the place where you temporarily lived while doing the research work
- from one temporary work location to another or
- on field trips connected with your research work
If you received an amount for scholarships, bursaries, fellowships, artists' project grants, prizes, or received another type of financial assistance this year, you’ll see an amount in box 105 of your T4A slip. For more information on the type of award you received, check out the Students and income tax guide.
Generally, any scholarship, bursary, fellowship, or prize amount you received that’s more than the scholarship exemption amount is considered income. In most cases, the first $500 is tax exempt. If, however, you were considered a full-time qualifying student in 2018, the full amount of your scholarship might be exempted. If you received a scholarship, fellowship, or a bursary related to a part-time program, the exemption that you’re entitled to is equal to the tuition paid plus the amount you paid for program-related materials (up to a maximum of $500).
- Enter the amount from box 105 of your T4A slip as is in box 105 on the T4A page in H&R Block’s tax software – the software will automatically calculate if any portion of this amount is taxable.
- If you received an artist grant (an scholarship, bursary, grant, etc. used in the production of a literary, dramatic, musical or artistic work), you’ll be able to claim the amount you paid in related expenses. You can’t claim expenses that were your personal or living expenses, have been claimed elsewhere on your return, or could be reimbursed to you.
Regardless of your age, if you received a T4A slip due to the death of your spouse or common-law partner, you’ll need to enter these amounts on your return even if it’s transferred to an RRSP. For more information, check out line 115 of the General Income Tax and Benefit Guide.
My T4A has an amount in box 196
The amount that’s reported in box 196 of your paper T4A slip refers to the amount of adult basic education tuition assistance you received during the year that’s more than the scholarship exemption amount you’re entitled to claim for this type of financial assistance.
This taxable tuition assistance is provided to eligible individuals that are enrolled in a course at a post-secondary institution to develop or improve skills in an occupation that’s certified by Employment and Social Development Canada.
Note: Even though you can’t claim a tuition tax credit for the fees you paid (due to the fact you received adult basic education tuition assistance) you can still claim a deduction for the tuition assistance you received.
Where do I enter this?
Follow these steps in H&R Block's 2018 tax software:
- Under the QUICK ENTRY tab, click the QUICK SLIP icon. You'll find yourself here:
- Type T4A in the search field and either click the highlighted selection or press Enter to continue.
- When you arrive at the appropriate page for your T4A slip, enter your information into the tax software.