[Qualifying Retroactive Lump-sum payment (QRLSP)]

FOUND IT!! So many places that say other income. When I entered the data it didnt change the outcome but not sure if that should be expected as my employment took off a boat load of taxes when back pay was provided. Not sure if worth it to send it in manually or just remove it and send via netfile. Anyone have any experience with these QRLSPs? 

Anyone know what this means? 

On 3/13/2023 at 7:04 AM, Geo123 said:

The CRA will not change the previous years' returns to include this income. However, the CRA may calculate the tax payable on the parts of the payment relating to previous years as if you received them during those years.

 

[Qualifying Retroactive Lump-sum payment (QRLSP)]

11 hours ago, Geo123 said:

In the case of a T4, T4E or a T4A you have the amount paid relating to several previous tax years. To report these amounts, please follow these steps:

1- On the "Left side menu on the «Interview tab", select the "T4 and employment income" and on the page to the right select "T4 income earned outside Quebec". For residents of Quebec, choose "T4 and RL-1 (Relevé 1) income earned in Quebec whit QPP contributions" if the amounts are on a T4 or a T4E.
If the amounts are on a T4A, select the option ''T4A - Pension, retirement, annuity and other income ''.

2- Return to the "Left side menu on the Interview tab" and select the item "Other income" and on the right choose "T1198 - Qualifying retroactive lump-sum payment".

3- Enter a brief description for the line "Description of QRLSP (Form T1198)".

4- On the line" Interest (current and prior years)", enter the amount of interest (if applicable).

5- Then, enter the principal amount relating to each applicable year.

Note: For residents of Quebec, you must also complete Form TP-766.2 if it was not completed by the payer. To access this form, return to the ''Left side menu on the Interview tab'' and select ''Other income''. On the page that appears on the right select the option ''TP-766.2 - Information about the amounts received as a retroactive payment, as support-payment arrears or as a repayment of support''.

I saw that as well but couldn't recreate that at all. There is no option for T1198. I did a search in Ufile and it says that I would not be able to submit through Netfile. there is nothing anywhere for me to do that within the current interview. I wish I could as then I would just see what it does and to determine if I should submit manually with it or not do it and just use only the T4 that I got and submit through netfile. 

[T5008 with a capital loss]

figured it out. all good now

[Qualifying Retroactive Lump-sum payment (QRLSP)]

I have received a QRLSP as a result of an arbitration award. I know if I want to submit that to show which prior years the taxes are from (on my T4) then I will have to submit a paper form along with T1198 form. I have a couple of questions on this as I have never had to deal with this before.

1) how do i know if this QRLSP/T1198 is worth submitting (i.e. how do I know if this will reduce the taxes that I pay this year)?

2) I had already pre-paid for my ufile set up for the year. what happens if i decide to submit my taxes in paper form as a result of this? 

3) is there any way to have the ability to fill out the taxes on Ufile with the T1198 on it but just not allow me to send it through netfile but allow me to print it so I can send it in manually?

This has become very confusing this year and appreciate any suggestions or input.

[T5008 with a capital loss]

On 4/15/2021 at 11:43 AM, Nawal said:

Hi @bzzz,  1- On the "Left side menu on the Interview tab", select "Interview setup".

2 - On the right-hand side of the screen. Go to the "Carryforward amounts and prior year information" group, check the box for "Losses of prior years, carrybacks" and then click "Next" at the bottom of the page.

3- Return to the "Left side menu on the Interview tab", select "Losses of prior years and carrybacks".

4- On the page appearing on the right, click on the icon of the plus sign "+" located on the right of the line "Net capital losses of other years".

5- On the page entitled "Net capital losses of other years" and enter your net capital losses of previous years.

6- If you wish to limit the amount of capital losses applied to the current year, enter the amount on the last line at the bottom of the page.

Do not forget, you must have had a taxable capital gain that is generated on line 12700 of the federal return.

The program will report the net capital loss on line 25300 of your federal return and on line 290 of the Quebec return.

To see the details of the application of net capital losses, click on the "Tax return" tab and select federal form "Net Capital Losses" and, if applicable, Quebec form "TP-729 - Net Capital Losses".

Is there new instructions for this as I cannot find this at all on the current menu?