Fees and Services question

[Leaf]

Hello. 

I assisted as a remote tutor for an organization, and as a "buddy" for my university, which on my tax slips were both put as in box 48, fees and services under my T4As.

I recognize this has to be put as a business, however it is not my business, and I do not understand the "fiscal date" aspect. The "buddy" service is from early october to mid november 2022, and the tutoring was from early October until Dec 31, 2022. I need some assistance if possible as to what to put for the fiscal year! Thank you!

[Geo123]

Hello Leaf,

You received a T4A slip with an amount in Box 048, for the professional service fees you earned. Note that this amount does not include taxes.

To enter this amount in the program, follow the steps below:

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

2. On the screen that appears on the right, go to the "Pension" group and check the box "Pension income, other income and split pension income (T4A, T4A(OAS), T4A(P), T4A-RCA, T4RSP, T4RIF, T1032)". Then, go to the "Self-employment" group and check the box "Self-employment business income". If you paid tax by instalments, go to the group "Tax paid by instalments and tax transfer" and check the box "Tax paid by instalments and tax transfer" then click "Next" at the bottom of the page.

3. Return to the "Left-side menu on the Interview tab" and select "Pension income, T4A".

4. On the page appearing to your right, click on the plus sign "+" icon to the right of the line "T4A - Pension, retirement, annuity and other income".

5. On the new page generated, enter the amount shown in Box 048 of your T4A to the line "Box 048 - fees for services (report this amount as a T2125 - Business or Professional income)".

6. Return to the "Left-side menu on the Interview tab", select the item "Self-employment income" and on the page appearing on the right, choose the appropriate option, either "T2125 - Business income" or "T2125P - Professional income".

7. On the page "T2125 - Business identification", enter the name of the business on the line "Name of the business (or your own name if the business does not have one)", then enter the other information in the mandatory fields marked with a red asterisk.

8. In the field for "6-digit code from the North American Industry Classification System", enter the code that best describes your industry. If you do not know the code, click on the tool tip (the question mark) (?) next to the box to get the list.

9. On the line "Products or services and their respective percentage (%) in the total income (mandatory for a Quebec return)", in the field on the right, enter your main service or product and enter the percentage (%). If you have other products or services, click on the "plus sign +" icon on the right to generate another field.

10. On the next page, "Income, expenses", enter the amount from Box 048 of the T4A on the line "Fees for services (T4A Box 048) (Enter the total if you have more than one amount)". If you have expenses, enter them in the boxes corresponding to their description.

11. If you paid tax by instalments, return to the "Left-side menu on the Interview tab", select "Instalments and tax transfers" and on the screen to your right, choose the option "Income tax paid by instalments" and enter the amounts paid to the federal government and to the Quebec government for residents of this province.

12. For expenses, if your company is registered for the GST and HST (QST), these expenses must be entered before taxes to reflect the ITRs and ITCs that you claimed.

13. For residents of Quebec, if you wish to pay your registration fee for Quebec, return to the "Left-side menu on the Interview tab" and choose the option ''Q438 - Quebec annual registration fee for the enterprise register''.

The amount will be carried over to lines 162 or 164 and 135 or 137 of the federal return. If applicable, this amount will also appear on line 154 of the Quebec return as well as line 25 of Quebec Schedule L. The program will also generate federal form T2125, as well as Quebec form TP-80 if applicable.

For more information on business and professional income, consult the following link:

For the CRA:

http://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002-business-professional-income-2016.html

For Revenu Québec:

http://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/in-155-v/