T4A Slip: What It Covers and How to Report It on Your Tax Return

The T4A slip is a critical tax slip to report income that does not fit into standard employment or investment categories. It covers a broad range of payments, including employer pensions, self-employed commissions, service fees, scholarships, RESP payments, annuities, and wage-loss replacement benefits. The payer files it with the CRA, and the recipients use it to report the amount on their personal tax return.

Understanding which income types appear on this slip and where to enter them on your tax return is the first step toward filing accurately and remaining compliant with the CRA requirements.

What is a T4A Slip?

A T4A slip, officially named a Statement of Pension, Retirement, Annuity and Other Income, is a CRA information slip that reports miscellaneous income not captured on the T4, T5, or other specialized tax slips. 

While a T4 reports traditional wages and a T5 covers investment income such as interest or dividends, the T4A serves as the primary reporting tool for a wide range of non-wage revenue, ensuring that both the recipient and the CRA have a consistent record of payments throughout the tax year.

The CRA requires payers, including employers, pension plan administrators, trustees, and other organizations, to issue a T4A slip whenever they make certain types of payments to a recipient. The recipient receives one copy for their records, and the CRA receives another directly from the payer. This dual-reporting system allows CRA to cross-reference what recipients report on their tax returns against what payers have submitted.

A note for Quebec Residents: Quebec has its own provincial tax system, so you must use both your federal (T4A) and provincial Releve slips (RL-2 for retirement/annuity income, or RL-1 for employment/other income) to file your tax return.

What Types of Income Does a T4A Cover?

The T4A covers a wide range of income types, including pensions, self-employed commissions, fees for services, RESP payments, scholarships, annuities, and wage-loss replacement benefits.

If you receive an unexpected T4A, the amount will typically fit one of these categories:

• Pension or superannuation – Box 016: This reports income from employer-sponsored pension plans. These amounts are reported on line 11500 of your tax return.
• Self-employed commissions – Box 020: This shows gross commissions earned as an independent agent. This income must be reported on a statement of business activities (Form T2125), with the gross income on line 13899 and the net income on line 13900 of your tax return.
• Annuities – Box 024: This includes periodic payments from an annuity contract. This amount is reported on line 11500.
• Fees for services – Box 048: This reports payments made to you as an independent contractor or freelancer for services you provided. Like commissions, this is considered self-employment income and must be reported on the applicable self-employment line of your return (lines 13499 to 14300).
• RESP educational assistance payments – Box 042: When a student withdraws funds from a Registered Education Savings Plan, the portion consisting of government grants and investment growth is reported here. This amount is reported on line 13000 of the student’s tax return.
• Scholarships, fellowships, bursaries, and artists’ project grants – Box 105: This shows the total amount of educational or artistic funding you received. The taxable portion, after applying any eligible exemption, is reported on line 13010.
• Payments from a wage-loss replacement plan – Box 107: Benefits paid from a disability or income-replacement plan where CPP and EI premiums were not withheld are reported here. This income is entered on line 10400 of your tax return.

For a complete list of all T4A box numbers and what they mean, you can refer directly to the CRA’s official T4A slip guide.

How to Report T4A Income on Your Tax Return

When you receive a T4A, your primary task is to transfer the amounts from each box to the correct line of your return. Enter pension amounts (Box 016, Box 024) on line 11500, RESP amounts (Box 042) on line 13000, scholarship (Box 105) on line 13010, and income tax deducted (Box 022) on line 43700 as a credit. If Box 020 or Box 048 contains self-employment income, complete and attach Form T2125.

Key T4A box numbers and their tax-return lines are summarized in the table below:

Special T4A Reporting Scenarios

The CRA has specific compliance rules for self-employment, as well as tax exemptions for scholarship amounts.

To handle these unique reporting requirements, keep these areas in view:

Self-Employment Income (Boxes 020 and 048)

When a payer reports an amount in Box 020 or Box 048, the amount is treated as self-employment income by the Canada Revenue Agency (CRA). This means you must complete Form T2125, Statement of Business or Professional Activities, to report the gross income and claim any eligible business expenses (e.g., home office costs, supplies, vehicle expenses) to lower your taxable income.

Scholarship And Bursary Exemption

If you received a T4A for a scholarship, fellowship, or bursary, you may not actually have to pay tax on it. Box 105 shows the total amount paid, not the taxable amount. How much you report on your tax return depends entirely on whether you are a qualifying student and your student status (full-time vs. part-time).

If you are a qualifying full-time student, your scholarship, fellowship, or bursary may be fully exempt, and you may not need to report an amount at line 13010.

For part-time students, the tax exemption is limited to tuition costs plus any mandatory program-related materials. The CRA also includes the basic $500 scholarship exemption.

If you were not considered a qualifying student, you generally report only the part of the total scholarships received in the year that is more than $500.

Additionally, scholarships and bursaries received for elementary or secondary school education are not taxable regardless of enrolment status.

Source: Taxable scholarships, fellowships, bursaries, and artists’ project grants – canada.ca

When a Payer Must Issue a T4A?

Businesses, trustees, or other entities that pay out reportable income on a T4A are legally obligated to file an information return with the CRA. As a payer, you must issue a T4A slip if:

• You made a payment that is not on CRA’s exceptions list, and the total payments to the recipient were more than $500 in the calendar year.
• Or you deducted income tax from any payment during the year.

If you pay a corporation, you generally do not need to issue a T4A (unless you are paying professional fees subject to withholding, such as legal fees).

Important Exceptions: Some categories on the exceptions list have different thresholds (for example, certain RESP payments use a $50 threshold), so always cross-check CRA’s T4A payer guidance for the specific payment type.

How T4A Differs from T4 and T5 Slips

There are three main tax slips used to report income in Canada – the T4, T5, and T4A. While they share some similarities, these slips differ in the type of income reported and who receives them. The T4 reports employment income, the T5 reports investment income, and the T4A reports everything else, including pensions, self-employment fees, scholarships, and RESP payments.

The following table highlights the core differences between T4, T5, and T4A slips:

Common Costly T4A Mistakes to Avoid

Maintaining tax compliance is about more than just hitting a deadline; it is about ensuring the data is accurate and reliable. Errors like incorrect recipient info or missing the electronic filing threshold can lead to administrative stress, delayed benefits for recipients, and heavy fines for businesses.

Be aware of these 4 common mistakes and the associated CRA penalties:

• Filing Errors: A mismatched Social Insurance Number or wrong box number is a frequent cause of filing issues. Because the CRA uses these codes to verify individual tax returns, a simple typo can freeze a recipient’s refund.
• Missing the Filing Deadline: Payers who miss the February deadline face penalties from the CRA based on the number of slips and the length of the delay, with a minimum penalty of $100. CRA also has a relieving administrative policy that can reduce penalties for small filers.
• Failure to File Electronically: The CRA requires payers to file electronically rather than on paper if they issue more than 5 T4A slips (returns filed on/after Jan 1, 2024). Ignoring this digital mandate can trigger penalties even if every other part of your tax data is perfectly accurate.
• Late Distribution To Recipients: If you distribute slips late (or not at all), CRA may assess $25 per day per slip (minimum $100, maximum $2,500).

Source: How to file information returns – canada.ca

Filing your T4A slips accurately doesn’t have to be confusing. By double-checking the amounts and filing on time, you ensure your recipients receive their benefits, and your business stays clear of unnecessary audits.

FAQs related to T4A slips