I received a 2018 T4A for "Fees for services" line 048 but we already claimed the amount in our 2017 taxes. What do we do?

[TurboTaxKim]

Did you report this amount from a T4A slip in 2017? Or just manually entered it on a T2125 Business Statement?

[hdundas]

We reported it on a T2125 as it had been invoices in 2017.

[hdundas]

It was entered manually on a T2125 Business Statement. It had been invoiced in 2017 and we are using accrual accounting. I am still waiting to hear what is advised. Doesn't make sense that I have to report the income again - but I don't think rejecting the T4-A is wise. Please help.

[TurboTaxKim]

You may have to contact CRA as well as the issuer of this T4A for the final answer on this matter.

You've done the correct thing by reporting the income using the "accrual basis of accounting" as this is when the income was earned. However, the issuer of the slip seems to be using the "cash basis of accounting" and did not issue that T4A until 2018 because this is when you were paid for your services. 

CRA may advise that you do not need to report the T4A on your 2018 if you can prove it was earned and claimed in 2017, which would be great. However, I strongly suggest you get clarification from them that this is satisfactory. 

Or, you may have to report the T4A on your 2018 return, and adjust 2017 to remove the income claimed, as you certainly do not want to, (nor are you required to), report it twice. If this is the case, it poses a problem if you have applied expenses to this income in 2017 as you will not be able to use these expenses against that income in 2018. 

I wish I was able to provide a more definite answer, but CRA will have the decision on how you need to report this.