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Box 028 error preventing netfile

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I have several T4As and one contains "other income" associated with my personal business under box 028. 

I have added this income to my self-employment T2125. Upon review, I get an error message telling me that I cannot Netfile because the income in box 028 must be input as self-employment income. The exact wording is:

 

 

A tax return was generated. However, the errors below prevent the transmission of your declaration.

The amount in box 028 of the T4A slip (Other income included in business income (memo)) must also be reported within the corresponding business as self-employment income.

 

Does anyone have a recommendation for how to fix this? It seems to me I have already done this input and can't find somewhere else to report the amount as self-employment income. 

 

Thanks,

Emma

 

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Hi,

According to the CRA Guide, box 028 of the T4A slip allows you to enter any other amount which may be declared elsewhere on a T4A slip or any other.

However, payment for services must be reported under Box 048 of the T4A.

You have received a T4A with the amount shown in box 028; we suggest you contact the issuer of the slip for a verification in that regard.

To enter this amount, please follow the steps below:

1. In the "Left-side menu on the Interview tab", select the "Interview setup".

2. On the screen to your right, go to the "Pension" group and check "Pension income, other income and split pension income (T4A, T4A (OAS), T4A (P), T4A-RCA, T4RSP, T4RIF, T1033)" and click "Next" at the bottom of the page.

3. Return to the "Left-side menu on the Interview tab", select the "Pension income, T4A". On the right-side page, choose the option "Pension, retirement, annuity, and other income".

4. If payment is not related to a service, go to the page entitled "T4A - Pension, retirement, annuity and other income", and select the line "Other information (click on the triangle to see the list of choices) (A payment of fees for services under code 028 should be entered in Box 048)". In the drop-down menu, choose "(028) Other income".

5. However, if the payment is for services rendered, you entered the amount in Box 048 and in this case, return to the "Left-side menu on the Interview tab" and select "Interview setup".

6. On the screen to your right, go to the "Self-employed" group, check "Self-employed business income" and click "Next" at the bottom of the page.

7. Then, select "Self-employment income" in the "Left-side menu on the Interview tab".

8. On the screen to your right, choose "T2125 - Business income" or any other option that applies most to your work.

9. Complete the "T2125 - Business identification" page and then on the next page "Income, expenses", enter the amount from box 048 of your T4A slip on the line "Fees for services (T4A Box 048)". If you have expenses, enter them in the boxes that correspond to their description.

For Quebec residents, if the amount in Box O of the RL-1 with an RZ code differs from the amount shown on the T4A slip, click on the "Maple Leaf" icon of the corresponding box, and a new box will be displayed where you can enter the amount for Quebec. This box will only be displayed if you have entered the federal amount first.

However, if no amount has been recorded with the code RZ on your RL-1, we suggest you contact the payer or the issuer of the slip to determine where he entered this other income amount.

You can visit the following link to the CRA:

http://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/completing-filing-information-returns/t4a-information-payers.html

The amount will be transferred to line 130 of the federal return and line 154 in the Quebec return.

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I have two T4As, one with income in 028 and the other with income in 048. I enter the amounts in the proper area of the T4A interview, but get an error that prevents me from netfiling. It says:

  • the amount in box 028 of the T4A...must be reported in the corresponding business as self-employment income

To the best of my knowledge, I have done this. I have gone through the above steps a number of times, but to no avail.

I have done my return of Genutax and it doesn't seem to give me an error message like this, though I have not tried to netfile that return.

When I enter the amounts in the T4A interview (ie amount in box 028 & amount in 048), the amounts end up on lines 8230 in box 3C. It was my understanding that I should have the total amounts of 028 & 048 appear in line 8 of box 3B. If I make sure that the amounts in 028 & 048 appear in box 3B (by entering them as gross professional fees & WIP, I end up with exactly twice the amount of box 028 & 048 on line 8299. Effectively doubling what I actually made. 

A friend of mine suggested disabling the interview and enter all of the T4 and T4A info manually.

Can I just remove the T4A slips from the T4A part of the interview? I used the CRA autofill function this year and the T4As appeared in the T4A part of the interview automatically. Should I remove these from this?

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