T4 slip - Box 40 - Gifts and awardsAt the federal taxable gift or reward should be reported on the T4 slip in Box 40, this amount is included in Box 14 of the T4.
For Quebec residents, a taxable gift or reward is reported on the RL-1 slip in Box L and the amount is included in box A of the RL-1.
The rules regarding gifts or rewards are somewhat different between the federal and Quebec. It is the employer's responsibility to determine what is taxable under federal jurisdiction and Quebec.
However, for you to ask the right questions to those concerned, we suggest you visit the following links:
For the CRA
For Revenu Québec
To declare the reward or gift when the gift or reward is included in Box 40 of the T4 slip for Quebec residents in Box L of the RL-1, follow the steps below:
1. On the left side menu of the " Interview " tab select the item "T4 and employment income".
2 - On the screen to your right, go to the "Other" group and click on the plus sign "+" icon located on the right of the line "Other employment income".
3 - On the page entitled "Other employment income" go to the line "Description and amount of other employment income", in the box below, enter from whom the gift or the reward comes from and in the box right enter the amount of Box 40 of the T4 slip and for Quebec residents to Box L of the RL-1 slip.
4. If your Quebec amount differs from the federal, click on the "Maple Leaf" icon to open a field for Quebec and enter the amount in Box L of your RL-1.
5. However, if there is no amount in Box 40 of your T4 slip, enter $0.00, click on the "Maple Leaf" icon, and enter the Quebec amount.
This amount will be reported by the program on line 10400 of the federal return and for Quebec residents on line 107 with code 05 on line 106 of the Quebec return.
However, it is possible for the CRA or Revenu Québec to claim an additional CPP or QPP contribution for Quebec residents depending on the gift or reward received.
ID: 20211029161129CA.xml
Webpage: KPA390-20211029161129CA.htm