TurboTax: T4A (Box 107)

 

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Relevant Material: "Box 107 on a T4A slip indicates income from a wage-loss replacement plan that is not fully funded by employee premiums. This amount is considered taxable income by the Canada Revenue Agency (CRA) and must be reported on your personal income tax return. 

Significance for CRA and Your Tax Return
  • Taxable Income: The amount in Box 107 is generally fully or partially taxable. It represents benefits received (e.g., short-term disability, long-term disability) when your employer funded any portion of the plan or exercised a degree of control over it.
  • Reporting on Your Return: You must report the total amount from Box 107 of your T4A slips on Line 10400 – Other employment income of your income tax return.
  • Claiming a Deduction for Premiums Paid:
    • You may be able to subtract any premiums you personally paid to the plan after 1967 from the benefits received, provided those premiums haven't been deducted in a previous year.
    • If applicable, you will report the net amount as income and should keep documentation (e.g., pay stubs, insurance statements) certifying the premiums you paid in case the CRA requests verification.
  • Source Deductions: Unlike a T4 slip for regular employment income, it is rare that income tax has been deducted at source for T4A Box 107 amounts, which may result in owing taxes when you file your return. .." (Google) 
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