Let's Talk About It: What is a T4A Slip?

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The T4A covers many of the pension, benefits and other income sources of an individual.

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Types of T4As

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There are four different types of T4As:

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● T4A (P)- Statement of Canada Pension Plan Benefits

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● T4A (OAS)- Statement of Old Age Security

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● T4A-RCA Statement of Distributions from a Retirement Compensation Arrangement

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● T4A- Statement of Pension, Retirement, Annuity and Other Income

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...And Here we go With More Boxes!

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Let us explain the reason as to why there are so many boxes. There are many different ways that people receive a form of income and other reasons for specific deductions. Because our T4A covers a range of scenarios people are in, it makes it easier to see what box pertains to someone's income situation. Here is a list of the most common T4A boxes:

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Box 16 – Pension or Superannuation

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If you received benefits because you paid into a company pension plan or superannuation fund, you will report this information in Box 16 of a T4A slip. You may qualify for the Pension Income Amount and Pension Income Splitting with Your Spouse

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Box 20 – Self Employed Commissions or Box 48 – Fees for Services

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If you receive a T4A with Box 20 or Box 48 amounts, you are considered self-employed for tax purposes as both of these boxes pertain to reporting self-employment income. If you’re a contractor or have earned income through commissions, this applies to you.

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If you have a T4A with Box 20 or 48 filled out, this means that you are to complete extra information when tax time comes. By being self-employed, you must complete the business form T2125- Statement of Business Activities This benefits you because you are then able to claim expenses to offset that income on that form

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Box 042 – RESP Educational Assistance Payments

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If you receive Educational Assistance Payments from a Registered Education Savings Plan (RESP) it will be shown in Box 042 and should be reported on Line 13000- Other Income of your tax return.

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Box 105 – Scholarships, bursaries, fellowships, artists’ project grants, and prizes

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If you were a full-time student, your scholarship/bursary income is exempt from tax in most cases in all provinces except Quebec. However, you must enter the T4A information on your tax return. Simply choose the option for Box 105 on your T4A income, which applies to full-time students to make sure you’re not paying taxes on this tax-exempt income.

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With part-time students, some or all of your T4A scholarship/bursary income may be exempt. For the most part, at least $500 will be exempted. Please note that it may still depend on how much scholarship/bursary and courses cost and the income you received.

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Box 107 – Payments from a Wage-Loss Replacement Plan

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You will receive a T4a if you’re been receiving benefits from a Wage Loss Replacement Plan , such as Short-Term Disability (STD), Long-Term Disability (LTD) or Weekly Indemnity (WI). These amounts will be reported Line 10400 of your tax return.

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Box 118 – Medical Premium Benefits:

If you received payments from your former employer for your Provincial or Government Medical Premiums, these amounts will be included as taxable “other employment income” on Line 10400 of your tax return. Note: These are not considered eligible medical expense deductions ‍

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Box 119 – Premiums Paid to a Group Term Life Insurance Plan:

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If you have group term life insurance plan Premiums that your former employer pays for, the amount paid will be included as taxable “other employment income” on Line 10400 of your tax return.

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Box 135 – Recipient-Paid Premiums for Private Health Services Plans:

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You will receive a T4A if your former employer pays for your Private Health Services Plans (PHSP or Extended Medical/Dental). The amount will be in Box 135. These amounts are eligible medical expense deductions that will be on Line 33099 of your tax return.

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Boxes 197 through 204 – Benefits related to COVID

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There will be new boxes on the T4 slip for benefits you may have received throughout the COVID-19 pandemic.

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● Box 197 – Canada Emergency Response Benefits (CERB)

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● Box 198 & 199 – Canada Emergency Student Benefit (CESB)

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● Box 200 – Provincial/Territorial COVID-19 financial assistance payments

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● Box 202 – Canada Recovery Benefit (CRB)

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● Box 203 – Canada Recover Sickness Benefit (CRSB)

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● Box 204 – Canada Recovery Caregiving Benefit (CRCB)

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If you are unsure if you are eligible for a T4A slip or just want to view a full list of income sources and box numbers, click on this link to learn more about it: T4A Statement of Pension, Retirement, Annuity and Other Income

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