Trainee Tax Question

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chobs
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Trainee Tax Question

#1 Post by chobs » Mon Nov 20, 2017 9:10 am

Hi,

For all those who have been through training in the past year or so (since Nav Canada started paying trainees right from the get go) ....

What box did you file your training income (the grant/bursary/whatever they called it when you were in your generic course) on your tax return? Did you pay taxes on it?

Reason I ask is that there seemed to be a lot of grey area on it, whether it was taxable or non taxable, and how exactly it fell in terms of tax law. I

The person that does my taxes after a lot of consultation put the amount I made during generic training in a specific box that obviously didn't please the CRA ... they've sent me a letter claiming they want more info on this and it's potentially unreported income? So now looks like I may get taxed on it. The person who was on my course with me filled out her taxes the same way reference that money and she hasn't received any correspondance from the CRA ...

Anyway, I'm just wondering what everyone else in a similar situation did?
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A346Dude
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Re: Trainee Tax Question

#2 Post by A346Dude » Thu Nov 23, 2017 8:59 am

I asked Nav Canada about this at tax time. I was told it was taxable income, and unfortunately our responsibility to pay taxes on it.
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Braun
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Re: Trainee Tax Question

#3 Post by Braun » Thu Nov 23, 2017 2:09 pm

100% taxable and it is the new employees responsibility to file the income in the appropriate way. There was absolutely no gray area when they rolled this program out.
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niwre
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Re: Trainee Tax Question

#4 Post by niwre » Tue Dec 05, 2017 9:40 pm

100% taxable and I believe the words the words on the offer sheet goes along the lines of "...the training allowance is taxable and will be reported on a form T4A..."
If that's grey area then we are all screwed... as far as that other person is concerned if they chose not to report on their T4A I hope the CRA does not come after them come tax time. They can go back a few years if they like.
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generic930
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Re: Trainee Tax Question

#5 Post by generic930 » Wed Dec 06, 2017 8:58 pm

I am not a CPA but have basic knowledge of accounting. I could be wrong so verify with a CPA.

I believe T4A under other income (line 130) is the right way to file it.

It's an income and you have to pay taxes on it at the same rates you would with a T4. (plus 2% for the employer part of the CPP that you have to contribute yourself since there is no employer)

Tho, the confusing part is...

It's like a scholarship but since you don't spend it on education expenses it is taxable.

I suggest you provide for it every months and deposit it in the best high interest saving account you can find.
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