You’ll receive a T4A: Statement of Pension, Retirement, Annuity, and Other Income slip for payments you received from any of the following income sources:
- Pension, superannuation, or annuities
- Lump-sum payments
- Self-employed commissions
- Patronage allocations
- Registered education savings plan (RESP) educational assistance payments or accumulated income payments (AIPs)
- Fees or other amounts for services or
- Other income such as research grants, scholarships, medical travel assistance, and Registered Disability Savings Plan (RDSP) income. You can find a for 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.
Did you receive amounts from a cooperative? 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. If you have an amount in box 20 and/or box 48 on your T4A slip, you’ll need to also report this income and any related expenses on the T2125: Statement of business or professional activities page in H&R Block’s tax software.
To add the T2125 page to your return:
- On the PREPARE tab, click the LET’S TALK ABOUT 2016 icon.
- Select the checkbox labelled I worked for myself and choose your province or territory of self-employment.
- 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 services then click Continue.
- When you arrive at the Statement of business or professional services page, enter your information into the tax software.
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 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 in the OTHER section of the tax software
If you received research grants in 2016 (box 104), you’ll need to enter the total amount of expenses you paid in the year in order to carry out your research projects. Just remember that 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, and prizes (box 105) this year, you’ll also need to enter the total amount you paid in related expenses. 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 a full-time student and you received a scholarship for enrolment in a program which qualifies for the Education tax credit or is used in the production of a literary, dramatic, musical or artistic work (art production grant exemption*), the full amount of your scholarship might be exempted.
Refer to the Canada Revenue Agency (CRA) website to see if you can claim more than the $500 scholarship exemption this year.
*The art production grant exemption is calculated as the total amount of reasonable expenses you paid in the year to fulfill the conditions of receiving the art production grant. This amount can’t be more than your grant amount.
Note: 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 amount paid plus the amount you paid for program-related materials (up to a maximum of $500).
For more information on the type of award you received, check out the Students and income tax 2016 guide.
Regardless of your age, if you received your paper 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 2016.
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 aren’t able to 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 claim this?
Follow these steps in H&R Block’s tax software to file your 2016 taxes:
- Under the QUICK ENTRY tab, click the QUICK SLIP icon.
- 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.