T4A Box 105 Artists grant

bcbumpa · ‎February 12, 2024

One of my clients was recently reassessed because on the T4A he received, there was an amount in Box 105. This was an artist's grant. When I was preparing his taxes, Profile gave me the option of entering this income (net) as taxable income, where it would show up on line 10310 of the T1 or transferring this income on his T2125 as professional income. I chose to transfer it to his T2125. I was wrong, and he was reassessed because nothing showed up on line 10310. Why did Profile give me this option? If an artist's grant must be entered so that it will show up on line 10310, that should be the only option Profile gives me. Hopefully someone from Profile will see this and comment.

bcbumpa · ‎February 15, 2024

Thank you for responding so quickly. I now understand that, with qualification, both options are open, but in discussion with CRA last week, it seems that they expect to see this income on line 13010. When I prepared my client's taxes last year, I reported this income on her T2125 as Professional Income. She was reassessed last week because it wasn't reported on line 10313. I will refile next week when CRA opens, removing this income from her T2125 and moving it to line 13010. The reason for my query was to point out that Profile instructions don't discuss what considerations need to be taken into place when deciding where to report this income. I know that now. Once again, I thank you for getting back to me.

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bcbumpa · ‎February 12, 2024

An error in the text. The line number should read 13010 not 10310

Mario B · ‎February 15, 2024

On line Other awards not eligible for 500$ exemption, the tax preparer needs to choose between reporting on box 13010 or reporting as business or professional income. If you choose business income, then it will allow you to transfer to the T2125.

And from the CRA website:, it does mention that you choose 13010 if its not received in the course of business.

ine 13010 – Taxable scholarships, fellowships, bursaries, and artists' project grants
Report amounts that you received as a scholarship, fellowship or bursary, or a prize for achievement in a field of endeavour ordinarily carried on by you (other than a prescribed prize) that were not received in connection with your employment or in the course of business, to the extent that these amounts are more than your scholarship exemption. If you received a research grant, see Line 10400 – Other employment income.

bcbumpa · ‎February 15, 2024

Thank you for responding so quickly. I now understand that, with qualification, both options are open, but in discussion with CRA last week, it seems that they expect to see this income on line 13010. When I prepared my client's taxes last year, I reported this income on her T2125 as Professional Income. She was reassessed last week because it wasn't reported on line 10313. I will refile next week when CRA opens, removing this income from her T2125 and moving it to line 13010. The reason for my query was to point out that Profile instructions don't discuss what considerations need to be taken into place when deciding where to report this income. I know that now. Once again, I thank you for getting back to me.