T1204 - Government service contract paymentsThe T1204 slip is the summary of government service contract payments information issued by all federal government departments, agencies and Crown corporations to an individual, partnership, small business or corporation that provides goods or services under contract.
Although the program does not generate the T1204, you declare your income as self-employment income in the program using Form T2125, so that you can claim eligible expenses in return for contract payments regarding this self-employment income.
To do this:
1- On the "Left side menu on the interview tab", select "Interview setup" and on the screen to your right, in the »Self-employment income" icon, check the box »Self-employment business income" and then click "Next "at the bottom of the page.
2- Return to the "Left side menu on the Interview tab" select "Self-employment income" on the page to your right.
3- Then, on the right-hand side, among the different options available (business income, professional income, commission income, etc.), select the one that applies to your situation.
4- Complete the page for "Identification of the company", enter your fiscal year as well as the classification code of your company according to the North American Industry Classification System (NAICS). To find your NAICS code, you must click on the question mark "?", a window will pop up on the right-hand side of the field, with the complete list of the NAICS codes, to allow you to determine the code associated with your company's field of activity.
5- If applicable, do not forget to include your identification numbers for both the federal and Quebec governments.
6- Subsequently, after entering your company's identification information, a sub-menu on the "Left side menu on the Interview tab" will appear in order for you to enter the applicable information in "Income, Expenses", "Motor vehicle expenses", "Home office expenses" and so on
7- In the section "Income, expenses", please enter the payment amount received in the field "Other income (specify)". This field is located at the bottom of the "Business income" section.
Gross income will be reported on line 13499 and net income on line 13500 of the federal return, while for residents of Quebec, income will be reported on line 164.
For more information, consult Guide T4002, Business and Professional Income, by clicking on the link below:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html
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Webpage: KPA320-20200211112654DE.htm