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 "T4A and pension income".
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. In 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 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: 20200129133426DE.xml
Webpage: KPA365-20200129133426DE.htm
