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Death Benefit - paper return?

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I am claiming death benefit issued by my (deceased) spouse's employer.  It is under the $10,000 exemption.  Looking at the CRA information, it appears I need to do a paper return  ... 'Attach to your paper return a note stating the death benefit amount you received but did not include in your income'.  But Ufile help says  ... "report the amount you receive that is more than $10,000", with no mention of a paper return.

I thought I'd found the option so that I could Netfile, until I re-read it -  "Benefit received from your employer upon the death of your spouse". 

Can I Netfile or do I need to do a paper return?



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See the following link:

Q. Who reports a death benefit that an employer pays?

A. That depends on who received the death benefit. A death benefit is income of either the estate or the beneficiary who receives it. Up to $10,000 of the total of all death benefits paid (other than CPP or QPP death benefits) is not taxable. If the beneficiary received the death benefit, see line 13000 in the Federal Income Tax and Benefit Guide. If the estate received the death benefit, see the T4013, T3 Trust Guide.

If you received $10,000 or less as a death benefit from an employer, do not report it on the tax return. It is still NETFILE eligible.

If you are curious about the scenario where the amount is to be reported, see line 130.

Completing your tax return

Report on line 13000 the total of all of your other income types.

In the space to the left of line 13000, specify the type of income you are reporting. If you have more than one type of income, attach a note to your paper return giving the details.

Edited by Winston
added clarification

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Thanks Winston.  I'm the beneficiary, so I will report 0 on line 130 since it's under $10,000.

Why would Ufile have the option  "Benefit received from your employer upon the death of your spouse".... wouldn't that usually be more of an insurance payment?  I had put the DB amount on line 130, then the same amount there, and it was deducted / affected amount of tax payable.  If it was phrased differently, i.e. Benefit received from spouse's employer, it would make more sense to me.  

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