Is it my right to file it, or is it a requirement? Based on my calculations, by having applied the amounts to the appropriate years, that I am better off paying taxes on the entire amount, this past year, than by attempting to shift the taxation to each of the the 5 years in which the retroactive payments were received (let alone the irritation of having to paper-file).
The T1198 is required in order file the federal income return with the Canada Revenue Agency. This form is for payers who paid a qualifying retroactive lump-sum payment (QRLSP) to an individual (other than a trust) in 1995 or later years, and for recipient. For futher clarification we would suggest contacting CRA.
Note: T1198 form is still locked by CRA and not finalized by CRA yet. Please refer to this link Why does TurboTax say my forms are locked or haven't been finalized?
We do not have any ETA on this yet but as soon a these forms gets finalize we will be updating them in TurboTax for an accurate calculations.
We appreciate your patience.
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My question wasn’t answered. I’m not asking from the payor’s perspective. I, as the receiver, already have the form from the employer. I am asking from my perspective: am I required to submit this, if there is no advantage for me? Based on my situation, I am better off having all the income in 2024, not spread across 2019-2024.