As tax season 2025 approaches, many Canadians are asking: What exactly is a T4A slip? Whether you’re retired, self-employed, a student, or receiving any form of non-employment income, understanding the T4A tax slip is essential for accurate tax filing.
In this guide, we’ll break down everything you need to know about the T4A slip in Canada — what it is, what each box means, how to report it, and how to avoid common mistakes.
What is a T4A Slip?
The T4A slip is a reporting slip filled out by an employer, institution, or government agency that reports specific sources of income that are not reported on a standard T4 slip. This might include
- Self-employment or freelance income
- Commissions
- Pension or retirement income
- Scholarships and bursaries
- Research grants
- Annuities
- Payments from a Registered Education Savings Plan (RESP)
- Other “non-employee” compensation
Some Canadians get a T4A and T4 mixed up, but the difference is the nature of the income that’s being reported. The T4A slip is exclusively for reporting miscellaneous or non-employee-type income. If you are carrying out some part-time freelancing, receiving retirement annuities, or making research grants, T4A slip Canada will report it all for CRA reporting purposes.
T4A Slip Canada: Dissecting Each Box
Each box on the T4A slip represents a specific category of income. Understanding these boxes is critical for accurately completing your income tax return:
- Box 020 – Self-employed commissions: Income earned from commissions as an independent contractor.
- Box 028 – Other income: Any income that doesn’t fall under the specific categories on the form.
- Box 105 – Scholarships, bursaries, and grants: Amounts received for educational purposes.
- Box 118 – Medical premium benefits: Employer-paid premiums for medical insurance plans.
- Box 119 – Premiums paid to a group term life insurance plan: These amounts are considered taxable benefits.
- Box 135, 136, 137 – RESP income payments: Educational assistance payments from an RESP.
- Box 016 – Pension or superannuation: Income from private pensions or superannuation plans.
- Box 048 – Fees for services: Professional, consulting, or other business service payments for non-employees.
Why Accurate CRA Income Reporting Matters
When you file your return, the CRA will match what you report on your return to what was reported to the CRA on slips such as the T4A slip. Any discrepancy in CRA income reporting can result in computer reassessments, usually with interest and penalties.
Remember that if you receive more than one T4A tax slip from different sources, you must report all of them — even if the amounts are negligible. The CRA in Canada has strict matching procedures, and omitting even one slip can result in a Notice of Reassessment.
Accurate reporting of your T4A slip Canada makes reporting of your taxation hassle-free. If you are not sure about anything, seeking the advice of a good tax accountant in Canada will save you from expensive errors.
Filing Your 2025 Taxes Based on Your T4A Slip: Instructions
When preparing your tax return for 2025, follow these steps to ensure accuracy when reporting your T4A income:
- Gather All Slips:
Make sure you have received all your T4A slips by the end of February 2025. If you suspect a missing slip, contact the issuing organization.
- Cross-Check Amounts:
Match the amounts on your T4A slips with your records (invoices, bank deposits, contracts, etc.). Report the correct figures, even if the slip seems to contain an error — but be sure to clarify with the issuer before making adjustments.
- Report Income in the Correct Sections:
Each box on the T4A corresponds to a different line number on the tax return. For instance, Box 020 income is reported as business or professional income, which means you can also claim business-related expenses.
- Don’t Leave Blank Boxes Unchecked:
If your T4A has several boxes filled, ensure that you understand each one. For example, if you have Box 105 filled (scholarships), ensure it is correctly reported and determine whether it’s taxable based on your enrollment status and age.
- Document Any Deductions:
If you’re claiming self-employment or freelance income, you may be eligible to deduct related business expenses. Keep receipts and documentation organized in case of CRA review.
Common Mistakes to Avoid
Here are some frequent errors made with T4A slips:
- Forgetting to report a slip:
This is one of the most common red flags for reassessment.
- Entering amounts on the wrong line:
Each T4A box must be matched with the correct tax form line.
- Misunderstanding scholarship rules:
Some scholarship income is tax-free if you are a full-time student; others are taxable.
- Overlooking deductions:
Especially with Box 020 or 048, failing to claim eligible expenses could mean overpaying taxes.
Final Thoughts
The T4A slip Canada can seem intimidating at first glance, but proper knowledge of its boxes and accurate CRA income reporting are the keys to trouble-free tax filing. Whether you’re reporting a straightforward pension payment or more complex professional fees, accurately filing your T4A tax slip in accordance with the CRA guide to T4A helps protect you from future issues and ensures full compliance.
If you’re worried or simply seeking peace of mind, our personal tax accountant Canada team at Numeracy Accounting is here to help. We’re experts at assisting Canadians with T4A slips, deductions, and complete compliance, so tax season is a walk in the park. Don’t jeopardize your financial future—get expert help today!