Eligible Deductions on Your T4 Slip
Your T4 slip is a very important tax document. I would argue it is the most common slip filed in a tax return in Canada. T4 slips are more than just reportable income, EI, CPP and tax deductions. Here is a list of some boxes may otherwise be ignored but are valuable deductions for your tax return. All boxes and lines for this blog pertain to the 2010 tax year.
Box 20 RPP Contributions – these are contributions made to your private Registered Pension Plan. This is an allowable deduction that will lower your taxable income. The deduction should also go on line 207 of your return.
Box 52 Pension adjustment – this box lowers the amount of allowable RRSP contribution space as a result of having and RPP. This box works in conjunction with Box 20. You will see the adjusted amount when you receive your Notice of Assessment from the CRA.
Box 42 Employment commissions – if you are a commissioned employee, you may also qualify for employment expenses, depending on your job description and industry. A T2200 must be signed by your employer to qualify for eligible employment expenses. Commission income from a T4 slip needs to be added on line 102 of your tax return.
Box 43 Canadian Forces personnel and police – this is income exempted from taxation due to working overseas or other out-of-country duties. This is, of course, specifically for the Canadian Armed Forces and Canadian police personnel. Put this amount on line 244 of your tax return.
Box 44 Union dues – for those working and contributing dues in a Canadian union are eligible for a deduction on their tax return. Put this amount on line 212 of your tax return.
Box 46 Charitable donations – this box is used when you are involved in a company charity campaign such as the United Way. There is no charitable receipt given to you but the donation appears on your T4 instead. Add the amount to your Schedule 9, then put the total allowable deduction onto line 349 of your Schedule 1 of your tax return.
Box 84 Public transit pass – this box is for companies and organizations which deduct public transit passes from your paycheque. Transfer the amount to line 364 of your tax return.