How to Report NR4 Slip Income in Canada: A Guide for Non-Residents and Residents
In Canada, the income reported in Box 16 of an NR4 slip (Statement of Amounts Paid or Credited to Non-Residents of Canada) represents gross income subject to withholding tax. Where you report this on your tax return depends on your residency status and the type of income:
For Non-Residents of Canada:
If you are a non-resident of Canada, you generally do not file a Canadian tax return for NR4 income because the withholding tax shown in Box 17 is considered your final tax obligation. However, in some cases (e.g., rental income, certain pension income), you may elect to file a return.
- Non-Resident Tax Return (Section 217 Election or Section 216 for rental income)
- Report Box 16 income on the applicable T1 return (Section 217 or Section 216).
- You may be able to claim a refund if withholding tax was too high.
For Residents of Canada (Mistaken NR4 Slip)
If you are a resident of Canada and mistakenly received an NR4 slip:
- Confirm if the payer should have issued a T4 or T5 instead.
- Report the income as the correct type (employment, investment, pension, etc.) on your T1 return using the appropriate line:
- Employment income: Line 10100 (if it was supposed to be T4 income)
- Investment income: Line 12100 (for interest, dividends)
- Pension income: Line 11500 (OAS), Line 11600 (CPP), Line 13000 (other pensions)
- Rental income: File a Statement of Real Estate Rentals (T776)
- Other Income: Line 13000 if it doesn’t fit standard categories.
Would you like guidance on a specific type of NR4 income?
The income reported in Box 16 of an NR4 slip (gross income paid or credited to a non-resident) does not go on a T4 slip because the NR4 is used for non-residents of Canada. However, if you are required to report this income on a Canadian tax return, where you report it depends on the type of income.
Here’s how to report NR4 Box 16 income on your T1 General Tax Return (if applicable):
Common Reporting Lines for Box 16 Income
· Interest and Investment Income → Line 12100
· Dividends (Eligible & Non-Eligible) → Line 12000
· Pension and Retirement Income → Line 11500 (OAS), Line 11600 (CPP), Line 13000 (Other Pensions)
· Rental Income (if electing under Section 216) → Form T776, then report net rental income on Line 12600
· Royalties or Other Income → Line 13000 (Other Income)
Non-Residents:
If you are a non-resident of Canada, typically, you do not need to report NR4 income on a Canadian tax return unless you are filing under a special election (e.g., Section 217 or Section 216 for rental income). The withholding tax in Box 17 is usually considered your final tax obligation.
Would you like help determining if you need to file a Canadian tax return for your NR4 income?
Box 16 of an NR4 slip (Category 46) represents “Other Pension Income.” If you need to report this income on a T1 General Tax Return, it should be reported as pension income on the appropriate line.
Where to Report NR4 Box 16 (Category 46) Income on T1:
· Line 11500 — Other Pensions and Superannuation (This is the main line for reporting foreign pensions, RRIF payments, and other pension-type income.)
T4 Slip Consideration:
· NR4 income does not go on a T4 slip because a T4 is for employment income, while an NR4 is specifically for non-resident income.
· If you are mistakenly issued an NR4 instead of a T4, you should contact the payer to correct it.
For Non-Residents of Canada:
· If you are a non-resident, you generally do not report this income on a Canadian tax return unless you are making a Section 217 election, which allows you to be taxed as a resident on certain types of income (potentially reducing tax owed).
Would you like help determining if you should file a return under Section 217?
Box 16 of an NR4 slip with Category 26 refers to “Scholarships, Bursaries, Fellowships, and Prizes” paid to non-residents of Canada.
If you need to report this income on a Canadian tax return (T1 General) because you are a resident or filing under a special election, it should be reported on:
Where to Report NR4 Box 16 (Category 26) Income on T1:
· Line 13010 — Scholarships, bursaries, fellowships, and grants
Does This Go on a T4?
· No, NR4 income is for non-residents, while a T4 is for employment income paid to residents of Canada.
· If you believe you should have received a T4A instead of an NR4, you should contact the payer to request a correction.
For Non-Residents of Canada:
· If you are a non-resident, the withholding tax in Box 17 is usually considered your final tax obligation, and you typically do not need to file a Canadian tax return.
Would you like guidance on whether you need to file a return for this income?
The tax withheld in Box 17 of an NR4 slip represents the non-resident withholding tax deducted by the Canadian payer before sending you the income. Where you report this depends on whether you are required to file a Canadian tax return.
1. If You Are a Non-Resident (Most Cases)
· Box 17 is usually your final tax obligation, meaning you do not need to report or claim it on a Canadian tax return.
· However, you may file a return if you elect under:
o Section 217 (for pension income, etc.)
o Section 216 (for rental income)
2. If You Are Filing a Canadian Tax Return (T1 General)
If you are filing a T1 return under Section 217 or Section 216, report the tax withheld from Box 17 on:
· Line 43700 — Total Income Tax Deducted (Enter the amount from Box 17 here)
If you are eligible for a refund, you may get back some of the tax withheld.
Would you like help determining if you should file under Section 217 or 216 to potentially claim a refund?
Box 16 of an NR4 slip with Category 61 refers to “Management or Administration Fees” paid to non-residents of Canada.
Where to Report NR4 Box 16 (Category 61) Income on a Canadian Tax Return (T1 General)?
If you are required to report this income on a T1 General Tax Return, it should go on:
· Line 13000 — Other Income (since it does not fall under employment, pension, or investment income categories).
Does This Go on a T4?
· No, NR4 income does not go on a T4 slip because a T4 is for employment income paid to Canadian residents.
· If you believe you should have received a T4A (for self-employment income) instead of an NR4, you should contact the payer for a correction.
For Non-Residents of Canada:
· If you are a non-resident, the withholding tax in Box 17 is usually considered your final tax obligation, and you generally do not need to file a Canadian tax return unless you are eligible for a refund or have other Canadian tax obligations.
Would you like assistance determining if you should file a return for this income?
Box 16 of an NR4(OAS) slip with Category 44 refers to Old Age Security (OAS) pension payments made to non-residents of Canada.
Where to Report NR4(OAS) Box 16 Income on a Canadian Tax Return (T1 General)?
If you need to report this income on a T1 General Tax Return, enter it on:
· Line 11500 — Other Pensions and Superannuation (This is the line for OAS pension income).
Where to Report Tax Withheld (Box 17)?
If tax was deducted from your OAS payments (Box 17), report it on:
· Line 43700 — Total Income Tax Deducted (This allows you to claim credit for the tax withheld).
For Non-Residents of Canada:
If you are a non-resident, the withholding tax in Box 17 is usually considered your final tax obligation, and you generally do not need to file a Canadian tax return unless:
You are filing under Section 217 to potentially get a tax refund.
