How do I report income from box 20 or 48 of my T4A?
You may have seen a pop-up box or a warning message prompting you to add a business income slip (T2125) if you added box 20 or 48 from a T4A to your return. This is because the slip issuer is treating you as a self-employed person and not as their employee.
We recommend adding the Business Income section to your return and reporting your income there. Here’s our guide on how to complete the T2125 when you didn’t realize you had a business. You should complete both the T4A and a T2125, this won’t double count your income.
Whether someone is an employee or is self-employed is one of the most hotly-debated issues in Canadian tax. The CRA has a page devoted to the topic here. If you disagree that this amount is self-employment income, you can report the income as other employment income on line 104 or as other income on line 130.
- To report the income as employment income on line 104, add the Tips, Royalties, Occasional Earnings section to your return and report the income in the table.
- To report the income as other income on line 130, add the Other Income section, and report the income in the table.
If you are unsure of what you should do, call the CRA individual enquiries line.
It’s your responsibility to add this income to your return—we don’t automatically include it for you when you enter box 20 or 48. Regardless of how you choose to report the income, make a note of it in your files for the year in case the CRA asks for clarification.
This post applies to 2016 and earlier versions of SimpleTax. Please see this help post instead.