T4A – Pension and Other Income

The T4A slip can appear unexpectedly at tax time, especially if you received income outside regular employment. Unlike the T4, which reports wages and salaries, the T4A covers income from pensions, self-employment, or contract work.

At Optimize, we use your T4A slip to help complete your tax picture. Knowing what it includes ensures your income is reported correctly and your financial strategy reflects all sources of income, not just employment.

The Foundation of T4A Income Reporting

The T4A is used to report a wide variety of income types that don’t fall under traditional salaried employment. You might receive a T4A if you:

• Work as an independent contractor or receive self-employment commissions.

• Collect pension or retirement income from a company plan.

• Withdraw from a Registered Education Savings Plan (RESP) or Registered Disability Savings Plan (RDSP).

• Receive research grants, scholarships, or bursaries.

• Get paid for professional services without being an employee.

Each T4A slip identifies the income type using specific boxes, with corresponding amounts that must be reported on your T1 return. While the amounts are often straightforward, the tax treatment can vary depending on the source.

Why the T4A Matters in Your Financial Plan

T4A slips are not just about reporting extra income. They highlight transitions in how you earn, spend, or draw down funds. This matters when you are:

• Retiring and beginning to draw a workplace pension.

• Earning freelance or consulting income on the side.

• Supporting a child who is using RESP withdrawals for school.

• Receiving taxable benefits from a disability savings plan.

• Providing professional services under a contract without T4 employment status.

Learn how to read a T4A form to better understand the details and terminology used throughout your return.

Because these income types are often irregular or part-time, they can lead to either underpayment or overpayment of tax if not coordinated properly. T4A income usually does not have taxes withheld at source, which makes planning even more important.

Learn How to Read a T4A

Understanding your T4A is about more than just data entry. It shows how income beyond regular employment affects your taxes and financial plan. T4As include income from pensions, commissions, self-employment, scholarships, and more. Knowing what each box means helps you avoid surprises and plan ahead.

At Optimize, we see every income source as part of your full financial picture. This article breaks down key sections of the T4A so you can approach tax season with clarity 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.

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.