Understanding your T4A
T4A's are mailed out in mid-February of each year to members who received a member refund in excess of $100 in May of the preceding year. Please keep your address current.
Sherwood Co-op is required by CRA (Canada Revenue Agency) to report all member refunds paid in excess of $100.00 and to withhold 15% of the amount earned over $100.00 and remit it to the government. The T4A reflects the member refund made to you in the previous year. Member Refunds are not necessarily taxable. Member Refunds earned on consumer goods (i.e. groceries, household items, gasoline for private car use) are not subject to tax. You are entitled to claim the tax withheld as outlined on your T4A as a credit when you file your personal income tax (write on the face of your T4A "Consumer Goods Only"). Instructions for including this on your personal income tax form are provided on the back of your T4A under Recipient. (Patronage returns are normally only taxable for business persons, farmers, contractors, etc.)
Note: The amount indicated in Box 30 of your T4A is the total patronage allocation amount for the tax year. This number is the total allocation of cash and equity, not the amount of your general cash repayment cheque.