Learn how to Read a T4A Form

Understanding your T4A isn’t just about entering numbers into your tax software. It’s about recognizing how different types of income beyond regular employment affect your taxes and financial planning. T4As report income from pensions, commissions, self-employment, scholarships, and more. Knowing what each box means helps you avoid tax surprises, prepare for any amounts owing, and plan more effectively.

At Optimize, we believe that every source of income is part of your bigger financial picture. This article breaks down the T4A into clear sections and commonly used boxes so you can navigate tax season with accuracy and confidence.

Identification and Basic Information

This section tells CRA who paid you, what kind of income you received, and when it was earned.

Payer’s name and address
Identifies the institution or organization that issued the T4A slip.

Recipient’s name and address
Matches your income with your CRA records and personal tax return.

Tax year
Indicates the calendar year in which the income was earned and must be reported.

Payer account number
CRA’s identifier for the organization that issued the slip. Included for tracking and audit purposes.

Common Income Types on a T4A

This section outlines the kinds of income that are often reported on a T4A. Unlike a T4, this slip is usually issued for non-employment income, and most amounts are not taxed at source.

Box 020 – Self-employed commissions
If you earned commissions without being on payroll (such as in sales or consulting), they’re reported here. You are responsible for reporting this as business income and paying your own CPP and taxes.
Box 016 – Pension or superannuation
Income from company pension plans, typically for retirees. Reported on Line 11500 of your T1.
Box 018 – Lump-sum payments
One-time payments such as retroactive pension payments, bonuses, or back pay. These can sometimes be averaged over multiple years for tax relief.
Box 105 – Scholarships, bursaries, or grants
Educational awards. Amounts may be fully or partially exempt depending on your student status.
Box 048 – Fees for services
Professional or business income paid to individuals (e.g., consultants, freelancers). Treated as self-employment income.

Important: T4As rarely have tax deducted at source. That means you may owe tax at filing time unless you’ve made installment payments or planned ahead.

Taxes Deducted and Credits

While most T4As show untaxed income, some may include withheld amounts — especially from pensions or government payers.

Box 022 – Income tax deducted
Shows any tax withheld at source. This reduces your balance owing when you file.
Box 119 – Premiums paid to a group insurance plan
May be relevant when calculating eligible medical expenses or taxable benefits.
Box 135 – Recipient-paid premiums for private health services plans
May be claimable as a medical expense if not reimbursed.

Tip: If you earned more than $30,000 from self-employment or contract work reported on a T4A, you may need to register for and collect GST/HST. This has implications for how you invoice and file going forward.

How Optimize Uses Your T4A

Reading your T4A is not just a tax exercise. It is a planning opportunity. At Optimize, we use your T4A to:

Understand non-employment income sources and structure your plan accordingly
We factor in all your income — including pensions, business revenue, or one-time payments — to build accurate projections.