T4A form

The T4A form is a tax document issued by the Canada Revenue Agency that reports income other than wages: payments made to a self-employed person for their services, retirement income, and scholarships. The payer must send it to the recipient and to the CRA by the end of February.

At a glance

Report income that isn’t wages: fees (payments for services), pensions, scholarships
Box 048: Fees paid to a self-employed worker, before taxes
Must be submitted by the last day of February at the latest
In Quebec, an RL-1 or a Relevé 2 (the equivalent forms in Quebec) is included depending on the type of income
No source deductions are made: anyone who receives a T4A must calculate the tax due on their own

Why it matters

Many entrepreneurs encounter the T4A for the first time when they receive their own form in the mail, without realizing that the CRA already has a copy. Imagine a self-employed designer who is paid $8,000 by a client: that client can provide the designer with a T4A, and since no tax was withheld at the time, the designer will have to pay that tax themselves in the spring. A smart habit: set aside about 25 to 30 percent of each payment received, that’s nearly $2,000 out of the $8,000, so you aren’t caught off guard. Two best practices: if you pay fees to freelancers or subcontractors, check to see if you need to issue tax slips; if you receive payments, set aside a portion of each payment for upcoming tax obligations. The T4A differs from the T5 form (dividends) and T5018 (construction subcontractors); since these forms are cross-checked by the tax authorities, a discrepancy can lead to a tax audit. The form and its fields are explained in detail by the Canada Revenue Agency. Bankeo connects you for free with a vetted accountant or CPA who can clarify your obligations, at no cost to you.

Frequently asked questions

What exactly is a T4A, and how does it differ from a T4?

The T4 is an employee’s pay stub, showing the amounts already withheld from their pay (taxes, QPP, the Quebec Pension Plan, and employment insurance). The T4A, on the other hand, summarizes payments made outside of an employment relationship (fees, pensions, scholarships), most often without any tax withheld. Receiving a T4A therefore means: it’s up to you to calculate the tax.

Who is required to file a T4A form?

Any business that pays pensions, retirement benefits, scholarships, or other reported income must file a T4A form by the end of February. For service fees, the requirement generally applies, but the CRA enforces it flexibly; an accountant can tell you exactly what to file based on your situation.

I received a T4A for my fees. How do I report this income?

You report it as business income or self-employment income, which allows you to deduct your eligible expenses (home office, travel, software) to pay less in taxes. This is often when hiring an accountant pays off. Bankeo connects you for free with the right accountant or CPA who understands your situation as a self-employed worker, at no cost to you.