T4A Slip: What It Means for Freelancers and Side Income in Canada

For a lot of Canadian freelancers, the T4A is the first official sign the CRA knows about their side income. It can arrive from a client you'd forgotten, show a figure that doesn't match your invoices, or not arrive at all. Here's what the CRA says each piece means and what to do with it.

What a T4A slip covers

T4A box	What it reports	Where it goes on your return
048	Fees for services	Self-employment lines 13499 to 14300
020	Self-employed commissions	Gross on line 13899, net on line 13900
105	Scholarships, fellowships, bursaries, artists' project grants	Line 13010
Amounts not reported elsewhere	Other income	Line 13000
Income tax deducted	Tax taken off before you were paid	Line 43700, with tax from all your slips

The T4A carries many other boxes for pensions, lump sums and benefits, but for side income it's box 048 and box 020 you'll usually see.

The 500 dollar rule for fees for services

The CRA calls this reporting fees for service. Any business or organization that pays another business for services has to report those payments when the total goes over 500 dollars in a calendar year, usually on a T4A slip in box 048. The amount excludes GST/HST and provincial sales tax. The payer sends you the slip by the last day of February of the following year and files a copy with the CRA.

The catch: no T4A doesn't mean no tax

This is the part I'd stress. Box 048 reporting depends on the payer doing it, and the CRA itself says it's currently not assessing penalties for missing box 048, except for a new rule aimed at the trucking industry. So plenty of clients never send one. That doesn't change your side: self-employment income is still income, slip or no slip. Use your own invoices as the record and treat any T4A as a cross-check.

What to do when a T4A arrives

1. Check the box number. For freelance work it should usually be 048.
2. Compare the amount with your invoices to that client for the calendar year.
3. If it's wrong, ask the payer to issue an amended slip.
4. Report the income on the self-employment lines of your return (13499 to 14300), with your expenses.
5. If any income tax was deducted, claim it on line 43700.

Why your T4A total may not match your invoices

Timing is the usual reason. The T4A covers the calendar year the client paid you, so a December invoice paid in January appears on the following year's slip. The other reason is sales tax: the CRA tells payers not to include GST/HST or PST in box 048, so if you charge GST/HST, your invoices will be higher than the slip.

T4A vs T4

A T4 is for employment income from an employer. A T4A is for other kinds of income, including payments to self-employed people. If you're being paid on a T4A by someone who controls your hours and tools like an employer, it's worth asking whether you're really self-employed. That's a bigger question than one slip, and the CRA has its own guidance on employee versus contractor status.

Students and grants

If you're a student, a T4A might show box 105 instead: scholarships, fellowships, bursaries and artists' project grants. These go on line 13010 rather than the self-employment lines, and they're treated differently, so don't lump them in with freelance income.

Expenses you can set against box 048 income

Because box 048 income goes on the self-employment lines, you report it as business income with your costs taken off, not as a lump of other income. That's good news. The software, equipment, phone use and home office costs you have because of the work can reduce the taxable figure, as long as you keep the receipts. If you've been treating T4A money as untouchable income on line 13000, check you're not paying more tax than you need to.

If several clients each send a T4A, add them all up, then add any work that came without a slip. The total of your invoices for the calendar year is what you report as gross income.

Payers: quick checklist

• Track every service provider you pay; report totals over 500 dollars in a calendar year in box 048.
• Leave GST/HST and PST out of the box 048 amount.
• Send slips to recipients by the last day of February.
• File the slips and the T4A summary with the CRA.
• Daycare subsidies use code 028, not box 048.

My verdict

If you freelance in Canada, the T4A is useful paperwork, but it isn't your income record. Keep your own invoice list, match any T4A against it, and report everything you earned. If you're building income online, my guides to AdSense payments in Canada, Patreon in Canada and Substack in Canada cover the other income you may need to add.

Frequently asked questions

What is a T4A slip?

A CRA information slip that reports income other than employment pay, such as fees for services, commissions, scholarships and pensions.

What is box 048 on a T4A?

Fees for services. The CRA says businesses report payments over 500 dollars in a calendar year to other businesses for services in box 048.

Where do I put T4A box 048 on my tax return?

On the applicable self-employment line of your return, lines 13499 to 14300, along with your business expenses.

When should I get my T4A?

Payers must send T4A slips by the last day of February of the following calendar year.

Must I report income if I didn't get a T4A?

Yes. Self-employment income is taxable whether or not a payer issues a slip.

Does box 048 include GST/HST?

No. The CRA says payers shouldn't include GST/HST or PST in the box 048 amount.