T4A stands for Statement Pension, Retirement, Annuity, and Other income Paid. This document states the income paid to a person, other than an employee. This document contains information, including name and address of the payer and payee, payer’s business number, payee’s social insurance number, and the amount of income paid in a calendar year are reported in the appropriate box. This document is very common in real estate business. The brokerage or the realty, reports the commission paid to the real estate broker on box 048. This document is issued by the payer after the calendar year, mailing a copy to the payee and a copy to the Canada Revenue Agency.
The payee needs his/her copy of T4A after end of the calendar year to report his income on his/her personal income tax return. Usually when a payee receives fees for services render, he/she can claim certain business related expenses to reduce his/her taxable income. If you want learn about the most common expenses that you can deduct, please click the link below or contact RKB Accounting.
The most common income reported on a T4A, includes: