T4A's are mailed out each year in mid-February to members who received a member refund in excess of $100 in May of the preceding year. That's why it's important to keep your address and contact information up-to-date.
North Central Co-op is required by CRA (Canada Revenue Agency) to report all member refunds paid in excess of $100 and to withhold 15% of the amount earned over $100 and remit it to the government. The T4A reflects the member refund made to you in the previous year. Member refunds earned on consumer goods (i.e. groceries, household items, gasoline for private car use) are not subject to tax. You are entitled to claim the tax withheld as outlined on your T4A as a credit when you file your personal income tax (write on the face of your T4A "Consumer Goods Only").
Box 22, Income Tax Deducted:
The tax withheld and remitted to CRA is a direct benefit to all members and can be used as a prepayment of tax. Include the amount shown in Box 22 as part of “total tax deducted per information slips” on your income tax form.
Box 30, Allocation:
Consumer Goods (Personal Use):
If your purchases from North Central Co-op were for personal use only (consumer goods), the allocation is not taxable. You receive the benefit of the tax withheld but do not include the patronage allocation (Box 30) as part of your income.
Suggestion: Write “Consumer goods only” on the copy you are enclosing with your income tax return to avoid any confusion with the Canada Revenue Agency. If you are filing electronically, enter the non-taxable portion in the non-taxable box.
If you are claiming some or all of your purchases from North Central Co-op as expenses against income, then you must include the applicable portion of the allocation on your income tax form as taxable income. You receive the benefit of the tax withheld (Box 22 of the T4A).
If you are filing your income tax return manually ensure you label the T4A slip indicating the portion that relates to business/farm use and personal use. If you are filing electronically, enter the non-taxable portion in the non-taxable box, and the remainder in the taxable box when entering the T4A slip information into any personal income tax preparation software program.
For more information, please contact Leila Braitenbach, our Member Relations Specialist at 780-963-0500 (ext. 200).