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Canada Revenue Agency |
Agence du revenu du Canada |
Protected B when completed | |||||||||||||||||||||||||||||
| Statement of Qualifying Retroactive Lump-Sum Payment |
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| To the payer: | ||||||||||||||||||||||||||||||||
| Fill out this form if you paid a qualifying retroactive lump-sum payment (QRLSP) to an individual (other than a trust) in 1995 or later years. Enter the amount of the QRLSP and its breakdown in the appropriate boxes below. Give the filled out and signed form to the recipient of the QRLSP. If you paid more than one QRLSP to an individual, fill out one form for each QRLSP paid. See the back of this form for details. |
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| Note: The QRLSP income stated on this form has to be included on the recipient's information slip (such as a T4, T4A and T4E). | ||||||||||||||||||||||||||||||||
| To the recipient: | ||||||||||||||||||||||||||||||||
| The Canada Revenue Agency (CRA) will not reassess your returns for prior years to include this income. However, you can ask the CRA to tax the parts for the prior years as if you received them in those years. You have to include the full payment on the correct line of your return for the year. See the back of this form for details. |
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| NEW: As of February 2025, you can submit your income tax and benefit return electronically even if you are asking for the special tax calculation. | ||||||||||||||||||||||||||||||||
| Name of recipient | Social insurance number (SIN) | Year of payment | ||||||||||||||||||||||||||||||
| Description of QRLSP and reasons for payment | ||||||||||||||||||||||||||||||||
| Total amount (principal and interest) |
Total principal (current and prior years) |
Total interest (current and prior years) |
Total principal (prior years only) |
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| 68518 | 68519 | |||||||||||||||||||||||||||||||
Breakdown of principal (box 68519) |
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| Enter the amount of principal that relates to each year that applies in the boxes below. Do not include the interest amount. | ||||||||||||||||||||||||||||||||
| 40th prior year | 32nd prior year | 24th prior year | 16th prior year | 8th prior year | ||||||||||||||||||||||||||||
| 68520 | 68528 | 68536 | 68544 | 68552 | ||||||||||||||||||||||||||||
| 39th prior year | 31st prior year | 23rd prior year | 15th prior year | 7th prior year | ||||||||||||||||||||||||||||
| 68521 | 68529 | 68537 | 68545 | 68553 | ||||||||||||||||||||||||||||
| 38th prior year | 30th prior year | 22nd prior year | 14th prior year | 6th prior year | ||||||||||||||||||||||||||||
| 68522 | 68530 | 68538 | 68546 | 68554 | ||||||||||||||||||||||||||||
| 37th prior year | 29th prior year | 21st prior year | 13th prior year | 5th prior year | ||||||||||||||||||||||||||||
| 68523 | 68531 | 68539 | 68547 | 68555 | ||||||||||||||||||||||||||||
| 36th prior year | 28th prior year | 20th prior year | 12th prior year | 4th prior year | ||||||||||||||||||||||||||||
| 68524 | 68532 | 68540 | 68548 | 68556 | ||||||||||||||||||||||||||||
| 35th prior year | 27th prior year | 19th prior year | 11th prior year | 3rd prior year | ||||||||||||||||||||||||||||
| 68525 | 68533 | 68541 | 68549 | 68557 | ||||||||||||||||||||||||||||
| 34th prior year | 26th prior year | 18th prior year | 10th prior year | 2nd prior year | ||||||||||||||||||||||||||||
| 68526 | 68534 | 68542 | 68550 | 68558 | ||||||||||||||||||||||||||||
| 33rd prior year | 25th prior year | 17th prior year | 9th prior year | 1st prior year | ||||||||||||||||||||||||||||
| 68527 | 68535 | 68543 | 68551 | 68559 | ||||||||||||||||||||||||||||
| Current year | ||||||||||||||||||||||||||||||||
| 68560 | ||||||||||||||||||||||||||||||||
Certification |
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| I, | , certify that the information given on this form and in any attached documents is correct and | |||||||||||||||||||||||||||||||
| First and last name (print) | complete. | |||||||||||||||||||||||||||||||
| Signature of payer | Position or office | Date | ||||||||||||||||||||||||||||||
| See the privacy notice on your return. | ||||||||||||||||||||||||||||||||
| T1198 E (24) | (Ce formulaire est disponible en français.) | Page 1 of 2 |  |
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| Information for payers and recipients | ||||||||||||||||||||||||||||||||
| What is a qualifying retroactive lump-sum payment (QRLSP) | ||||||||||||||||||||||||||||||||
| A QRLSP is a lump-sum payment paid to an individual (other than a trust) in a year that relates to one or more prior eligible tax years in which the individual was a resident of Canada for the full year. To be a qualifying amount, the payment must have been paid after 1994 from one of the following sources: |
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| • | income from an office or employment received under: | |||||||||||||||||||||||||||||||
| – an order or judgment from a court or other competent tribunal | ||||||||||||||||||||||||||||||||
| – an arbitration award | ||||||||||||||||||||||||||||||||
| – a lawsuit settlement agreement (including damages for loss of office or employment) | ||||||||||||||||||||||||||||||||
| • | benefits from unemployment insurance or employment insurance | |||||||||||||||||||||||||||||||
| • | benefits from a superannuation or pension plan (other than non-periodic benefits such as lump-sum withdrawals) | |||||||||||||||||||||||||||||||
| • | spousal, common-law partner, or taxable child support payments | |||||||||||||||||||||||||||||||
| • | benefits from a wage-loss replacement plan | |||||||||||||||||||||||||||||||
| • | Canadian Forces members' and veterans' income replacement benefits | |||||||||||||||||||||||||||||||
| Note: A year in which an individual became bankrupt is not an eligible tax year. | ||||||||||||||||||||||||||||||||
| Amounts not qualifying | ||||||||||||||||||||||||||||||||
| An amount received under any part of a retroactive lump-sum payment that is eligible for any of the following deductions, is not a qualifying amount: | ||||||||||||||||||||||||||||||||
| • | legal expenses | |||||||||||||||||||||||||||||||
| • | salary reimbursements | |||||||||||||||||||||||||||||||
| • | reimbursement of top-up disability payments | |||||||||||||||||||||||||||||||
| • | repayment of pension or benefits | |||||||||||||||||||||||||||||||
| • | deduction of social assistance payments, workers' compensation benefits | |||||||||||||||||||||||||||||||
| An amount under normal collective bargaining, such as negotiated back pay, is not a qualifying amount (although an amount from an arbitration award does qualify). |
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| Why provide the breakdown of a QRLSP | ||||||||||||||||||||||||||||||||
| Generally, a lump-sum payment is included in income in the year the recipient receives it. This may result in a greater tax liability than if the payment had been received in the year or years to which it related. |
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| A special tax calculation is available to individuals who receive QRLSPs that relate to any year after 1977. The calculation applies if the total of all principal amounts that relate to prior years (after 1977) from all QRLSPs is $3,000 or more. |
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| If you are the payer of a QRLSP, fill out this form to help the CRA decide if the special tax calculation is beneficial to the recipient. | ||||||||||||||||||||||||||||||||
| If you are the recipient of a QRLSP and if the amount shown for your "Total principal (prior years only)" is $3,000 or more, attach Form T1198, Statement of Qualifying Retroactive Lump-Sum Payment, to your return for the year of payment to ask for a special tax calculation. If you have more than one QRLSP form, add the amounts shown for the "Total principal (prior years only)" on all your forms. If the result is $3,000 or more, attach the QRLSP forms to your return that payers gave you. |
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| T1198 E (24) | Page 2 of 2 | |||||||||||||||||||||||||||||||