February brings a stack of slips, and the acronyms blur together. Knowing which slip is which keeps your return accurate and helps you spot deductible expenses you might otherwise miss.
T4 — employment income
A T4 reports employment income along with CPP, EI and income tax deducted by an employer. If you held more than one job during the year, you'll receive a T4 from each employer. Combine the totals — they feed directly into the corresponding lines of your T1 return.
T4A — pension, commissions and fees for service
The T4A covers a wide range: pensions, superannuation, self-employed commissions, fees for services and certain benefits. Contractors and freelancers often receive a T4A instead of a T4. That income is reported as self-employment, which means related business expenses become deductible.
Other slips to watch for
A T5 reports investment income, a T3 covers trust and estate distributions, a T5007 shows social benefits, and RRSP contribution receipts arrive separately. Bring every slip you receive — a missing slip is the single most common reason for a CRA reassessment.