A T4A is another, shorter term for the Statement of Pension, Retirement, Annuity and Other Income. It is used to report pensions, retiring allowance, annuities, and any other income benefits.
The T4A serves as an umbrella tax slip; it covers incomes that are not often included on tax slips like the T4 and others. Generally, the T4A is filed when payment on the following is made:
- Lump-sum payments
- Patronage allocations
- Pension or superannuation
- Self-employed commissions
- Fees or other amounts for services
- RESP educational assistance payments
- Registered education savings plan accumulated income payments
- Research grants, certain benefits paid to partnerships or shareholders, death benefits, wage-loss replacement plan payments not requiring to withhold Canada Pension Plan contributions and employment insurance premiums.
The T4A is usually issued to self-employed contractors. Income from self-employed individuals is reported in box 28 or 48.
How are T4A slips necessary?
T4A slips are received if an individual receives income from annuities, pensions, retiring allowance, benefits for medical premiums, grants for the apprenticeship incentive, Registered Disability Savings Plan payments, death benefits, and Registered Education Savings Plan payments.
T4A slips are usually sent through mail and received by the end of February. If consent is made, the T4A can be received through electronic mail.
What’s in a T4A slip?
Different types of income can be found different boxes on a T4A slip. Pension or superannuation can be found in box 016, and the amount in this box is entered in line 115 of your tax return. The amount also serves as a basis for one’s qualifications for the pension income. Students can also receive an RESP accumulated income payment in box 040, and must be issued on line 130 of your tax return.
The T4A and T4 slips can be very similar; make sure you scan your slip meticulously before application.
Reporting T4A Information to the CRA
T4A slips are reported by the employer, company, or pension custodian, to the Canada Revenue Agency. The payer is tasked to send separate copies of the T4A slip to both the home address of the employee and the CRA.
An employee can also get a copy of their T4A slip from the CRA’s online services. This can be done by signing on to the My Account service, and clicking on Tax Returns. Choose Tax Information Slips (T4 and More). There, tax slips from the previous three tax years will be available for viewing. Click T4A Statement of Pension, Retirement, Annuity, and Other Income to see a copy of the slip.