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Unable to file - T4A error msg


CPoli
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Hello.  I am unable to file and receive error msg: the amount in box 048 of the T4A slip must also be reported within the corresponding business as self-employment income.

I already have the amount in the Self-employment income in box 048 as required.  How can this error be resolved so I can file?  I am a BC resident my whole life.   I didn't receive this message last year.  

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unable to file.  I am having a very similar problem.  WARNING states   "The amount in box 020 of the T4Aslip must also be reported within the corresponding business as self-employment income."  I have entered it and it doubles my income.  Where do I put it in the interview process.  I received an email that there would be phone support but no # to call and when you enter it in the help query it freezes and I get kicked out.  Just need to know exactly where in the interview process I need to put this.  I have been a UFILE client for many years and this is the first time I haven't been able to file.

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Quote

I had the same problem as well. What I did was deleted one tab and re-entered it again and it worked. The catch is when you report it as self-employment income, it will ask you to contribute to CPP. That's the catch. In the past, I could elect not to contribute to CPP. CRA will go after you but it was an option in the Ufile program. The option is no longer available I think. Good luck with your filing.

 

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Hi CPoli,

To delete a form on the "Interview" tab, locate the form in the "Left side menu", and then click the gray minus sign located just to the right of the form name. A pop-up window will appear asking you to confirm the deletion. By clicking "Yes", the page will be deleted.

CAUTION: The form and the data entered on it will be permanently removed from your tax return. You will not be able to undo this operation.

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Hi again CPoli,

I hope the following information will help you entering the amount from the box 048 of the T4A.

If 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

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  • 2 years later...

This seems to be a glitch/error on the part of Ufile. I too cannot file (2020) because Ufile demands that I enter my box 48 amount from my T4A. However, I have already entered any amount from T4As and other self employment income on the T2125 in the "gross sales, commissions or fees" box. So if, under business income, I also add the fees for services/box 48 from T4As, then the income is counted TWICE! Also, because we are expected to use the accrual method, and a T4A reports a cash method for the organization paying for my services, I will not necessarily be reporting all the T4A income in the 2020 year (some may have been recorded the year before). Also, the T4A does not include HST, whereas on the "gross sales, commissions or fees" I am reporting income including HST.  I am not sure why Ufile is asking for the information twice. Can anyone shed some light? thank you.  

Edited by Anne-Marie Kaskens
typo
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Hi Anne-Marie Kaskens.

You need to enter the T4A data using Box 48. That is a nominal entry and just let's CRA match reporting info they have received. The amount from the T4A does not get added to your income. Instead you have to re-enter that amount on a business statement. It will only be included once.

Now if you use the accrual method there are no issues, however doing a reconciliation showing opening accrued items and closing will allow CRA to agree with your income should they ever do an audit.

Then on the income statement if you report your income including HST then make an adjustment to deduct all is good.

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thank you for your response. First of all, my T4A are reported as the T4A slips. But then ufile says they must ALSO be reported on the T2125. All fine there - because i do report it all the "gross sales, commissions or fees" box (see screenshot). But then Ufile says I also have to include it in the "fees for services" (T4A-box 48 amounts) - see screenshot. But then the T4A income gets reported twice. The only way they do not both get counted twice is if I leave box 48 area blank. (or if I deduct the T4A amounts from the "gross sales, commissions or fees" amounts. Are you saying I should do that? (deduct the amount from the Gross sales, commissions or fees box? If I do that, then I am not reporting all the HST I collected here (maybe that's fine, since it gets reported on my HST return? I really appreciate you answering my question, and would be thankful if you could clarify. thanks!  

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Hi Anne-Marie Kaskens.

Ok only report the T4A amount on the line "Fees for services (T4A Box 048)" on the T2125. Don't report it up above on the first line. Doing that  will cause the duplication. Yes deduct it from the gross sales.

Now I suspect you are using the GST/HST Quick Method of reporting taxes collected so all ok there.

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no I don't use the quick method. my sole proprietorship business involves writing and curriculum development - so I only offer service, not goods, and I charge HST on my writing services. So each year I fill out an HST return. I have read about the quick method, but I honestly cannot make sense of what it is or whether it would benefit me. Since I do not use the quick method, does your advice remain the same (remove the T4A amounts from the gross sales - and only report the HST on the amount I reported in top line) - then report all the HST I charged on my HST return?   thanks for your help!

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Hi Anne-Marie Kaskens.

Likely the quick method would be to your benefit as I suspect you have few expenses that include the tax. If you are including the HST in gross income I hope you are taking it back out and also reporting your expenses at net of tax. Otherwise you will be increasing your business income and personal income taxes. HST should neither be an income or an expense using the long method.

Using the long method you should only report your gross sales net of HST collected. Your expenses would also be reported net of HST paid. That would result in your business income being stated correctly. Otherwise you could be paying personal income tax on top of the HST collected.

Your HST report would report the HST collected and the HST paid and you would indicate the revenue on which the tax was collected as well as the expenses net of tax. 

The advice about removing the T4A Box 48 amount from the gross sales and placing it on the specific line on the T2125 stays the same. You still need to open up a T4A slip in the T4A and pension income area and enter the Box 48 amount but as mentioned that amount does not pass to the T2125 or any other line on your return. It just conveys to CRA a bit of information that's all. 

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  • 1 month later...

I am preparing tax return for a couple. They have business. The business was a sole proprietorship from Jan to Jul, then change to partnership from Aug to Dec. They received T4A from their two clients. Since the business were change to partnership, when I am doing the partnership T2125, I click generate business income for the wife. Now, I am getting error on the wife's tax return because of the T4A.The amount in box 048 of the T4Aslip must also be reported within the corresponding business as self-employment income. There was no error on the husband tax return. The T4A amounts were posted in the interview of the husband

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On 3/21/2018 at 12:09 PM, CPoli said:

Hello.  I am unable to file and receive error msg: the amount in box 048 of the T4A slip must also be reported within the corresponding business as self-employment income.

I already have the amount in the Self-employment income in box 048 as required.  How can this error be resolved so I can file?  I am a BC resident my whole life.   I didn't receive this message last year.  

I know this post is three years old but sharing my experience for everyone's future reference. 

I had exactly the same issue and tried to figure it out for a while knowing in my heart that I entered everything I could (T4A slip and T2125). I removed the T4A and T2125 tabs from the left hand navigation pane and added fresh T4A and T2125 tabs then re-entered all the info. That cleared the error message in 'Review' tab! It looks like this is an application glitch. If you know this, it is so simple to solve the issue but if you don't it is a nightmare. Hope this helps.

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  • 1 month later...

I have the same message: The amount in box 048 of the T4A slip must also be reported within the corresponding business as self-employment income.  I deleted everything & re-entered, but still ended with the same message. Extremely frustrating!

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I am having this same problem: The amount in box 028 of the T4A slip must also be reported within the corresponding business as self-employment income. I have reported the income on my T2125, but still get this error.  I have emailed the support team but have not heard back. 

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Same here!

I have deleted all the T4A tabs as well as the T2125 Business and re-inputted them all 3 times and still receiving the following error message:

T4A box 048 is present, make sure this amount is also included within a business grouping.

I have emailed the support team 2 twice with no response.

Please help!

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I was able to get some assistance by using the form directly on the Ufile website (https://www.ufile.ca/contact/contact-us). They responded pretty quickly once I used this.

My problem was with Box 28 on the T4A, but see if this works for Box 48 as well.

>>>>>
If the income from box 028 is not a self-employment income (fees for services), you should choose as description for box 028: (028) Other income.

If the income from box 028 is a self-employment income (fees for services), you should choose as description for box 028 the last description from the drop-down menu: 'Other income included in business income (MEMO)", then you should add the income in a T2125 section, in box "Other income (T4A Box 028)".

>>>>>

As soon as I changed this drop down menu, it solved my double counting issue and my Netfile issue.

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