RL-1 slip - Box O, code RM - Commission income -
Self-employed
You received an RL-1 slip with an amount in Box O and
the code RM for the commissions you earned when
self-employed. Note that this amount does not include taxes.
To enter this amount in the program, please 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 for "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" and
click "Next" at the bottom of the page.
3. Return to the "Left-side menu on the Interview
tab", select "Pension income, T4A".
4. On the page appearing to your right, click on the
plus "+" icon to the right of the
line "T4A - Pension, retirement, annuity and other
income".
5. On the new page, enter the amount from Box 020 of the T4A
slip on the line "Self-employed commissions (report this
amount as a T2125 - Commission income) (RL-1 box O)", on
the right field choose Box 020.
6. Thereafter, 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
"T2125C - Commission income".
7. On the page "T2125 - Business
identification", enter the name of the business on the
line "Name of the professional 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. Under the subsection "Income, expenses", on
the page entitled "T2125 - Commission", enter the
amount from Box 020 of the T4A on the line "Self-employed
commissions (T4A Box 020) (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 to your right and
choose the option ''Q438 - Quebec annual registration fee
for the enterprise register''.
The gross of commission income amount will be carried over to
line 13899 and the net income on line 13900 of the federal return
as well as to line 154 of the Quebec return and line 25 of Quebec's
Schedule L. The program will also generate federal form T2125 as
well as Quebec's form TP-80.
For more information on self-employed income, please consult the
following links:
For the CRA:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html
For Revenu Québec:
https://www.revenuquebec.ca/documents/en/publications/in/IN-155-V%282017-11%29.pdf
ID: 20190919092525DEX.xml
Webpage: KPA365-20190919092525DE.htm
