T4A slip - Box 048 - Fees for services - Business
income
You received a T4A slip with an amount in Box 048, for the
professional service fees you earned. Note that this amount does
not include taxes.
To enter this amount in the program, follow the steps below:
1. On the "Left-side menu on the Interview
tab", select "Interview setup".
2. On the screen that appears on the right, go to the
"Pension" group and check the box "Pension
income, other income and split pension income (T4A, T4A(OAS),
T4A(P), T4A-RCA, T4RSP, T4RIF, T1032)". Then, go to the
"Self-employment" group and check the box
"Self-employment business income". If you paid tax
by instalments, go to the group "Tax paid by instalments
and tax transfer" and check the box "Tax paid by
instalments and tax transfer" then click
"Next" at the bottom of the page.
3. Return to the "Left-side menu on the Interview
tab" and select "Pension income,
T4A".
4. On the page appearing to your right, click on the
plus sign "+" icon to the
right of the line "T4A - Pension, retirement, annuity and
other income".
5. On the new page generated, enter the amount shown in Box 048
of your T4A to the line "Fees for services (report this
amount as a T2125 - Business or Professional income)", in
box 048.
6. Return to the "Left-side menu on the Interview
tab", select the item "Self-employment
income" and on the page appearing on the right, choose the
appropriate option, either "T2125 - Business income" or
"T2125P - Professional income".
7. On the page "T2125 - Business
identification", enter the name of the business on the
line "Name of the business (or your own name if the business does
not have one)", then enter the other information in the mandatory
fields marked with a red asterisk.
8. On the field for "6-digit code from the North
American Industry Classification System", enter the code
that best describes your industry. If you do not know the code,
click on the tool tip (the question mark) (?) next to the
box to get the list.
9. On the line "Products or services and their
respective percentage (%) in the total income (mandatory for a
Quebec return)", in the field on the right, enter your
main service or product and enter the percentage (%). If you have
other products or services, click on the "plus
sign +" icon on the right to generate another
field.
10. On the next page, "Income, expenses", enter
the amount from Box 048 of the T4A on the line "Fees for
services (T4A Box 048) (Enter the total if you have more than one
amount)". If you have expenses, enter them in the boxes
corresponding to their description.
11. If you paid tax by instalments, return to the
"Left-side menu on the Interview tab", select
"Instalments and tax transfers" and on the screen
to your right, choose the option "Income tax paid by
instalments" and enter the amounts paid to the federal
government and to the Quebec government for residents of this
province.
12. For expenses, if your company is registered for the GST and
HST (QST), these expenses must be entered before taxes to reflect
the ITRs and ITCs that you claimed.
13. For residents of Quebec, if you wish to pay your
registration fee for Quebec, return to the "Left-side menu
on the Interview tab", choose the "Self-employment
income" section in the screen located at right and choose
the option ''Q438 - Quebec annual registration fee for the
enterprise register''.
The gross amount will be carried over to lines 13499 or 13699,
while the net income will be reported on lines 13500 or 13700 of
the federal return. If applicable, this amount will also appear on
line 154 of the Quebec return as well as line 25 of Quebec Schedule
L. The program will also generate federal form T2125, as well as
Quebec form TP-80 if applicable.
For more information on business and professional income,
consult the following link:
For the CRA:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html
For Revenu Quebec:
https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/in-155-v/
ID: 20190918144644DEXX.xml
Webpage: KPA320-20190918144644DE.htm
