A T4A is created to report income for the year that is received.  T4As are mailed out in February of each year to members who received an allocation refund of $100 or more in February of the preceding year.

Lake Country Co-op Limited is required by the CRA (Canada Revenue Agency) to report all members allocations in excess of $100 and to withhold 15% or the amount earned over $100 and remit it to the CRA on your behalf as pre-payment of income tax.  The allocation is reported in Box 30 of the T4A and the income tax withheld is reported in Box 22 of the T4A.  The allocations are not necessarily taxable.

Common T4A Questions

Why wasn't my equity cheque the amount listed in Box 30?

Members receive 25% of their allocation as cash back, the remainder of the allocation is put in their equity account.  Members can start to withdraw from their equity account when they are 65+ or if they have moved out of the trading area.  Members who have had their equity paid out and are over the age of 69 will receive 100% of their allocation as cash back (less $100 required to keep member active)

Does everyone receive a T4A?

No, members will only receive a T4A if their allocation for the year is over $100.

What does allocation mean?

It's the distribution of funds based on your purchases and purchase type.

What is Box 30?

Box 30 is the member's total allocation from the previous year.

Do I need to enter the amount from Box 30 on my tax return?

If your purchases from the Co-op were for CONSUMER GOODS only DO NOT put this amount on your taxes.  If you are claiming some of your purchases from Co-op as EXPENSES on your taxes, then you must INCLUDE this amount on your taxes.  

What is Box 22?

Box 22 is a tax credit.  The CRA requires that Co-op deduct and remit 15% (taxes) of any allocation over $100.

Do I need to put the amount from Box 22 on my tax return?

Regardless of consumer goods or expenses, the income tax deducted in Box 22 should be included on your tax return.  This is a tax credit.