Box 107 T4A, Wageloss, edit appears asking if client has paid deductible premiums. Can anyone send me in the right direction?
What are considered deductible premiums?
If paid several years ago and now receiving wage loss, are those premiums considered deductible and what is required for proof .
There is another thread on this forum about that exact issue - I suggest using the search function to find it. But, basically - yes - all the historical premiums paid by the client could be deductible, if you can obtain that information. Ask your client to search through all their pay stubs and/or other relevant benefit statements for all years they were employed. Good luck!
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Usually, I find a T4A is issued when the employer has paid the premiums and no T4A is issued when the employee has paid the premiums.
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That is useful information, but why the edit on Taxfolder
You didn’t mention TaxFolder in your original post. I don’t use TaxFolder, but I am guessing it is trying to help you gather that info before importing into TaxCycle - you get a similar warning message in TaxCycle if that box is empty.
Sorry I meant Tax Cycle not taxfolder
The flag is because you can deduct long and short term disability premiums from the wage loss replacement income.
Be prepared for a two pronged review on it so make sure you take copies of all the paystubs with the premiums listed for each year. I’ve done about 5 of these in the last year and first the client got a questionairre to fill out on what kind of income it was, and did we file it correctly? (we did you just have to fill out the easy questionairre about where the money came from and why). Then a second separate review follows asking for a reason and proof of why the income claimed was lower than the T4A slip listed it as.
Rather than playing around with pay subs, I tell the client to get the information from his employer who can easily get it from the payroll software or payroll services. Fully accurate and unquestionable by the CRA.
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They will still review it regardless of what documentation you get for the STD/LTD premiums. The printout is definitely easier to wrangle but both will suffice for CRA review purposes. I’ve done a bunch of these using just the paystubs for proof of premiums paid.
Okay, thank you!