💼 Line 10400: The Employment Income Most People Forget to Report

When filing your Canadian tax return, line 10400 – Other employment income is used for income earned from work that does NOT appear on your standard T4 slip.

👉 This is one of the most misunderstood lines — and a common source of CRA reassessments.

💡 Key Insight: Line 10400 covers employment-related income outside regular salary, wages, or commissions.

📌 What Is Line 10400?

Line 10400 is used to report employment income that:

  • ✔ Is not included on your T4
  • ✔ Comes from employment-related activities
  • ✔ Is still taxable under CRA rules

👉 It includes amounts from slips like T4A or T4PS, as well as income with no slip at all.

📊 Common Types of Income on Line 10400

💵 Income without a T4

  • Tips and gratuities not reported by employer
  • Occasional or casual earnings

🌍 Foreign employment income

  • Income earned from a foreign employer
  • Must be reported in Canadian dollars

🎓 Special employment-related income

  • Research grants (net amount)
  • Clergy housing allowance
  • Employee profit-sharing plans (T4PS)

📄 T4A-based income

  • Wage-loss replacement payments (box 107)
  • Supplementary unemployment benefits (box 152)
  • Group insurance benefits

👉 These are all explicitly listed by CRA as examples of line 10400 income.

⚠️ What DOES NOT Go on Line 10400

  • ❌ Regular salary → goes to line 10100
  • ❌ Self-employment income → goes to lines 13499–14300
  • ❌ General “other income” → goes to line 13000

👉 Example: fees in T4A box 048 are considered business income, not line 10400.

📅 How to Report Line 10400

  1. Collect all relevant slips (T4A, T4PS, etc.)
  2. Add income not shown on slips (tips, foreign income)
  3. Convert foreign amounts to CAD
  4. Enter total on line 10400

👉 Always keep supporting documents — CRA may request proof.

📊 Simple Example

You earned:

  • $2,000 in tips (not on T4)
  • $5,000 from a foreign employer

Total for line 10400 = $7,000

⚠️ Common Mistakes

  • ❌ Forgetting to report tips
  • ❌ Misclassifying business income
  • ❌ Ignoring foreign income
  • ❌ Mixing with line 13000

👉 CRA cross-checks slips automatically, so inconsistencies are easily detected.

🧠 Expert Opinion from dir.md

“Line 10400 is where many taxpayers unintentionally underreport income. The biggest risk is misclassification — confusing employment, business, and ‘other income’ categories.”

💡 Pro Tips to Stay Compliant

  • ✔ Review all T4A and T4PS slips carefully
  • ✔ Track tips manually if not reported
  • ✔ Always include foreign employment income
  • ✔ Double-check classification vs self-employment

❓ FAQ

What is line 10400 used for?

It is used to report employment income that is not included on a standard T4 slip.

Do I need to report tips?

Yes, tips and gratuities not shown on a T4 must be reported on line 10400.

Is foreign employment income included?

Yes, foreign employment income must be reported on line 10400 in Canadian dollars.

Can I report freelance income here?

No, freelance or business income must be reported as self-employment income, not on line 10400.

🔗 Learn More

📣 Final Takeaway

Line 10400 is about income you earned — even if no one reported it for you.

👉 If it’s work-related and not on your T4, there’s a good chance it belongs here.