How to Report a T4, T4A, and T4A-NR on Your U.S. Tax Return: Step-by-Step Guide

Filing U.S. taxes with Canadian income can feel tricky for Canadians working in the U.S., snowbirds, or Americans getting Canadian pensions. Last year, the IRS processed over 146 million tax returns, many with foreign income like Canadian slips. Clear tips make reporting T4, T4A, or T4A-NR slips on your U.S. tax return much easier.

This guide from SAL Accounting provides easy steps to report these slips on Form 1040, convert Canadian dollars to the U.S., and avoid double taxes. Keep reading for detailed guidance on T4, T4A, and T4A-NR.

Quick Takeaways

• Report T4 wages on Form 1040, Line 1, T4A pensions on Line 5b, freelance on Schedule C.
• Convert T4, T4A, T4A-NR income from CAD to USD using IRS yearly rates.
• Claim 15% T4A-NR tax withheld via Form 1116 for consulting or royalties.
• File U.S. taxes by April 15, or June 15 if abroad, and pay by April 15.
• Get T4, T4A slips by February 28, and follow up on delayed T4A-NR slips.

What Are T4, T4A, and T4A-NR Slips, and Who Reports Them?

Canadian tax slips are your key to acing your U.S. tax return. Let’s break down T4, T4A, and T4A-NR in simple terms:

• T4 Slip: Shows job income, like wages or bonuses, from Canada (source). It matches the U.S. W-2.
• T4ASlip: Covers income for Canadians, like pensions, scholarships, or freelance work.
• T4A-NR Slip: Reports income for non-residents, such as U.S. residents, earned from Canadian work like consulting or acting (source). It often holds back 15% for taxes.

The IRS requires U.S. tax filers to report all income on Form 1040. U.S. citizens, residents, or green card holders, even those visiting Canada, must file T4s for jobs or T4A-NRs for consulting. You add these slips to your Form 1040. Consult our cross-border tax accountant for expert help. 

What’s the Difference Between T4, T4A, and T4A-NR Slips?

T4, T4A, and T4A-NR slips each do their own thing. Let’s check out their differences:

1. T4 slips go to Canadian workers. They track job pay, like wages or bonuses. Taxes depend on your setup, sometimes none.
2. T4A slips are for Canadians living there. They cover extra income, like pensions or freelance work (detailed on the CRA’s T4A page). Taxes usually skip withholding, but not always.
3. T4A-NR slips hit non-residents, like U.S. residents. They report Canadian work pay, like consulting or royalties. They take out 15% of taxes upfront.

Pro Tip: Create a quick reference chart listing each slip’s purpose and income type (e.g., T4: wages, T4A: pensions). Keep it handy to avoid confusion when sorting multiple slips during tax season.

For a broader look at handling Canadian income, explore our detailed guide on reporting Canadian income on a U.S. tax return. The table below offers a quick overview of T4, T4A, and T4A-NR key differences:

Slip	Who Gets It	Income Type	Tax Withholding
T4	Canadian workers	Wages, bonuses	Varies, may be none
T4A	Canadian residents	Pensions, scholarships, freelance income	Usually none, but varies
T4A-NR	Non-residents (e.g., U.S. residents)	Consulting, royalties	Typically 15%

Why Report T4, T4A, and T4A-NR Income?

Canadian slips like T4, T4A, or T4A-NR require reporting on your U.S. tax return. Here’s why you must report them:

• IRS Rules: The IRS wants all your income on Form 1040, even Canadian slips. They check everything to stick to the rules.
• Avoid Fines: Skip reporting, and you’ll hit penalties. Fines or interest add up fast.
• Tax Treaty: The Canada-U.S. tax treaty and Form 1116 credits avoid double taxes. They save you money olowith rules like those outlined in withholding taxes under the U.S.-Canada tax treaty. 
• Form Placement: Unlike stocks, these slips go in exact spots. Think Line 1 for wages, 5a/5b for pensions, or Schedule C for freelancers.

Pro Tip: Review the Canada-U.S. tax treaty summary on IRS.gov (here) before filing. Understanding specific provisions, like Article XV for wages, can help you spot tax-saving opportunities unique to your situation.

Reporting T4, T4A, and T4A-NR on Your U.S. Tax Return (Shared Rules)

Here’s how to report your T4, T4A, and T4A-NR income on Form 1040. We’ll begin with the rules that apply to all slips:

Change to U.S. Dollars

Form 1040 uses U.S. dollars (USD). Convert slip amounts with the yearly average IRS exchange rates. Save your calculations for the IRS. Mistakes create issues. Use a calculator to stay accurate.

Example: In 2025, Emma earns $8,000 CAD from a Canadian job. Using the IRS exchange rate of 0.75, she converts it to $6,000 USD ($8,000 × 0.75).

Avoid Double Taxes

Double taxation can be costly, but the Canada-U.S. tax treaty helps. Use Form 1116 to credit taxes withheld by Canada (in USD) for all slips, cutting your U.S. tax bill. If you live abroad and qualify, Form 2555 can exclude up to $126,500 of certain income. Explore other strategies to avoid double taxation between the US and Canada and stay compliant. 

Example: Canada took $1,200 CAD ($900 USD at 0.75 rate) from Liam’s income. He uses Form 1116 to claim a $900 USD credit, cutting his U.S. tax bill.

Pro Tip: File Form 1116 or 2555 early to test, which saves more. If your income is under $126,500 and you qualify, Form 2555 might beat a tax credit. Consult a tax pro to maximize savings.

How to Report T4 in the U.S. Tax Return

T4 slips show job pay, like salaries or bonuses, similar to Form W-2. Convert the amount to USD. Add it to Form 1040, Line 1 (Wages, salaries, tips). Wrong lines cause IRS notices. Tax software helps avoid errors. See the T4 form below for Canadian job income:

Foreign Earned Income Exclusion: Job income may skip U.S. taxes, up to $126,500 in 2024, if you live abroad and meet IRS rules, like the physical presence test. File Form 2555 to claim this. Otherwise, use Form 1116.

Example: Noah’s T4 shows $40,000 CAD in wages. At a 0.75 exchange rate, he converts it to $30,000 USD and puts it on Line 1. Living in Canada full-time, he uses Form 2555 to skip U.S. taxes on this income, up to $126,500.

• Read more: “Taxes for US Citizens Working Remotely for Canadian Companies”

Reporting T4A: Pensions, Scholarships, and Self-Employment Income

T4A slips cover various incomes. Check the slip for the type:

• Pensions: Add to Form 1040, Line 5b (Taxable pensions and annuities).
• Freelance or Self-Employment: Use Schedule C. Move the net profit to Form 1040, Line 3 (Business income).
• Scholarships: Put on Form 1040, Line 8r (Other income).

View the T4A form below for pensions or freelance income:

Foreign Earned Income Exclusion: Freelance income may skip U.S. taxes if you live abroad and file Form 2555, with tips for handling the Canadian side covered with our small business tax accountants. Pensions and scholarships don’t qualify. Use Form 1116 for those.

Example: Ava’s T4A shows $15,000 CAD in pensions and $6,000 CAD in freelance income, converted to $11,250 USD (Line 5b) and $4,500 USD (via Schedule C to Line 3). Living abroad, she skips the $4,500 USD freelance income with Form 2555.

Pro Tip: Deduct freelance expenses (e.g., home office, travel) on Schedule C to lower your taxable profit, saving you money. Track expenses year-round to maximize deductions.

How to Report T4A-NR Income on Form 1040

T4A-NR slips apply to non-residents, like U.S. residents working in Canada. They cover consulting or royalties. Check the slip:

• Consulting or freelance: Use Schedule C. Move the net profit to Form 1040, Line 3.
• Royalties: Add to Form 1040, Line 8 (Other income).

Check out the T4A-NR form below for non-resident income:

Foreign Earned Income Exclusion: Consulting income may skip U.S. taxes if you meet IRS rules and file Form 2555. Royalties don’t qualify. Use Form 1116 instead.

Example: In 2024, Ethan’s T4A-NR showed $10,000 CAD in consulting and $2,000 CAD in royalties, converted to $7,500 USD (via Schedule C to Line 3) and $1,500 USD (Line 8). Canada withholds $1,500 CAD ($1,125 USD), claimed on Form 1116.

• Read More: “How to File Foreign Business Income Taxes in Canada”

This table shows how to report T4, T4A, and T4A-NR income on Form 1040:

Slip Type	Income Type	Form 1040 Placement	Form 2555	Form 1116
T4	Job pay (salaries, bonuses)	Line 1 (Wages, salaries, tips)	Yes*	Yes
T4A	Pensions	Line 5b (Taxable pensions)	No	Yes
T4A	Freelance/Self-Employment	Schedule C to Line 3 (Business)	Yes*	Yes
T4A	Scholarships	Line 8r (Other income)	No	Yes
T4A-NR	Consulting/Freelance	Schedule C to Line 3 (Business)	Yes*	Yes
T4A-NR	Royalties	Line 8 (Other income)	No	Yes

Deadlines and Penalties for T4, T4A, and T4A-NR U.S Tax Filing

Timing matters for Canadian and U.S. taxes. Let’s ensure you meet your tax deadlines:

1. Canadian Deadlines for Getting Your Slips

Your employer will send T4 and T4A slips by February 28. T4A-NR slips will arrive by then, but international mail might delay them. Contact payers if slips are late. This starts your taxes on time.

2. Canadian Tax Filing

File Canadian returns by April 30 or June 15 if self-employed. Pay taxes by April 30. Late payment adds a 5% penalty plus interest. Meet deadlines to avoid extra costs.

3. U.S. Deadlines for Filing Your Form 1040

File Form 1040 by April 15 or June 15 if abroad. Pay taxes by April 15 to avoid a 5% monthly penalty, up to 25%. File Form 4868 by April 15 for an October 15 deadline. Form 4868 extends filing, not payment. Use Form 1116 or 2555 by the deadline. For businesses issuing slips, staying on top of corporate tax deadlines in 2025 for Canadian companies is key to avoiding penalties. 

Case Study: Cross-Border Deadline Rescue

Problem: A U.S. citizen in Canada, working remotely for a Canadian firm in 2023, risked missing the June 15 U.S. tax filing deadline, unaware of options for those abroad. Facing penalties, they contacted us in early April.

What I Did: I advised filing Form 4868 by April 15 for an October 15 extension and paying estimated U.S. taxes by April 15 to avoid a 5% penalty. I suggested confirming the T4 slip receipt and filing their Canadian return by April 30.

The Result: The extension and tax payment prevented U.S. penalties, and timely Canadian filing avoided a 5% penalty plus interest.

T4, T4A, T4A-NR U.S. Tax Reporting Mistakes to Avoid

Filing T4, T4A, and T4A-NR slips needs care. Avoid these errors:

• Skipping Currency Conversion: Don’t use Canadian dollars on Form 1040. Convert to USD with IRS.gov rates. This prevents incorrect reporting.
• Misplacing T4A Income: Place pensions on Line 5b, not Line 1. Put scholarships on Line 8. Wrong lines cause IRS issues.
• Forgetting Tax Credits: Claim Form 1116 credits for Canadian taxes. Missing them raises your tax bill. Check slips for taxes held back.

To keep your filings error-free, connect with ourCPA tax accountants for tailored guidance.

Final Thoughts

U.S. taxes with Canadian T4, T4A, and T4A-NR slips need care, but easy steps keep your money safe. If you’re a Canadian working in the U.S., a seasonal resident, or an American with Canadian income, learn how to report a T4, T4A, and T4A-NR on Form 1040. This guide makes reporting income and saving on cross-border taxes simple. 

Contact us at SAL Accounting for a free consultation to get your U.S. tax return right. Our experts will guide you every step of the way.

Frequently Asked Questions (FAQs)