What is line 20700 on Tax Return

What is a T4A slip?

The T4A slip stands for Statement of Pension, Retirement, Annuity, and Other Income. The information reported on all of the T4A slips you created for each recipient for the calendar year is totaled on the T4A. Furthermore, in the T4A slip, you can also get information on the following incomes:

• Pension or Superannuation
• Lump-sum Payments
• Self-employed Commissions
• Annuities
• Patronage Allocations
• Registered Education Savings Plan (RESP) Accumulated Income Payments
• RESP Educational Assistance Payments
• Fees or other amounts for services
• Other income, such as Research Grants, Wage-loss Replacement Plan Payments if you were not required to withhold Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums, death Benefits, or certain benefits paid to partnerships or shareholders.

Furthermore, it serves as more of an all-purpose slip by including sums or income sources that don’t show up on other slips. Simply put, it keeps track of money that doesn’t appear on a regular paycheck from a business to an employee.

Depending on the income level they belong to, there are many sorts of T4As as well. The T4A(P) and T4A(OAS), which describe your pension plan earnings and old-age security benefits, respectively, are two examples. These must also be included in your filing.

What is line 20700 on the tax return?

The other name for line 20700 is a registered pension plan (RPP) deduction. A registered pension plan (RPP) is a pension strategy established by your employer and authorized by the Canada Revenue Agency (CRA) to pay you a pension once you reach retirement age.

According to the Government of Canada’s official website, registered pension plans (RPP) also contain these: 

• contributions for current service.
• contributions for past service for 1990 or later years
• contributions for past service from 1989 or earlier years while a contributor
• contributions for past service from 1989 or earlier years while not a contributor

Completing your Income Tax and Benefit Return

Add up all of the sums on your T4 slips, T4A slips, and union or RPP receipts, and enter the total on line 20700 of your tax return.

Conclusion

This blog has given us an overview of line 20700 on the tax return. The Canada Pension Plan (RPP) is a registered pension plan (RPP) established by your employer and authorized by the Canada Revenue Agency (CRA) to pay you a pension once you reach retirement age. Line 20700 includes a Statement of Pension, Retirement, Annuity, and Other Income (T4A). The T4A is more of an all-purpose slip because it includes sums or income sources that don’t show up on other slips.