Employment income earned on a reserve
If you have Status Indian and are exempt from paying taxes, you
must indicate this in the program. This will allow the program to
exempt from tax the income that you earned on a reserve.
Please complete the first step as follows:
1. On the left-side menu of
the " Interview " tab, select
"Interview setup".
2. On the screen to your right, check the box for "Tax return
for a Status Indian" and click "Next" at the bottom of
the page.
3. Return to the left-side menu on
the " Interview " tab and select
"Status Indian".
4. On the page that appears on the right entitled "Status
Indian exemptions", answer the question "Please confirm that
you are a Status Indian" you must answer "Yes" because
you are a Status Indian.
Quebec residents must capture their information on "Quebec
prescription drug insurance plan". In this topic, you must
specify your situation by selecting the option "4 - Exceptions,
Quebec prescription drug insurance plan, all year" and clarify
by choosing "Registered Indian (code 24)".
For employment income earned on a reserve, please follow these
steps:
A) You received a T4 slip with an amount in Box 71.
If you are a resident of Quebec, you also received
an RL-1 slip with an amount in Box R. You will find Box
71 of the T4 slip at the bottom of the "T4 - Statement of
Remuneration Paid" page, and for Quebec
residents it is called "T4 - Statement of Remuneration
Paid (RL-1) with QPP contributions". In the section entitled
"Other information (click on the triangle to see the list of
choices)", choose the option "Box 71 - Indian (exempt
income) - Employment (RL-1, box R)" and enter the amount in the
field to the right. The entry in this box automatically applies to
Quebec residents as well.
B) Since employment income earned on a reserve is exempt from
tax, there is no amount in Box 14 of the T4 slip or in Box A of the
RL-1 for Quebec residents. However, your income is reported in Box
71 of the T4 and in Box R of the RL-1.
C) Employment insurance (EI) premiums are not
taxes and are not exempt. Therefore, there would be EI premiums
withheld at source by your employer and this amount will be
reported in Box 18 of the T4, as well as insurable earnings which
must be reported in Box 24 of the T4 slip.
D) You do not have to pay contributions to the
CPP/QPP, unless the employer has elected to contribute,
in which case the amount of contributions will be shown in Box 16
or 17 (and for residents of Quebec in Box B of the RL-1), and the
QPP pensionable earning will be reported in Box 26 of the T4 slip
(and for Quebec resident in Box G of the RL-1).
E) However, for residents of Quebec, you must pay
contributions to the QPIP (as shown in Box H of the RL-1
slip) and the PPIP insurable earnings will be reported in Box I of
the RL-1 (Box 56 of the T4 slip).
Your employment income earned on a reserve will not be entered
on line 10100 of the Federal return. However, for
residents of Quebec, the employment income will be reported on line
101, but will be deducted on line 293 of the Quebec return.
NOTE: If you have no taxable income at the federal level,
please check the "No income to report in 2021 " in the
"Interview setup". Otherwise, you will not be able to file
your federal return using NETFILE.
In addition, for Quebec residents, no premium will be calculated
for the Quebec prescription drug insurance plan and code 24 will be
entered in the box 449.
Under the "Review" tab, a warning message will appear
regarding the pensionable earnings; please ignore it.
We suggest you visit the CRA's website to find more information on
Canadian Status Indians, by clicking on the following link:
https://www.canada.ca/en/revenue-agency/services/aboriginal-peoples/indians.html
For residents of Quebec, consult the following link:
https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/276-to-297-taxable-income/line-293/
ID: 20211102160305CA.xml
Webpage: KPA390-20211102160305CA.htm
