Is filing T1198 mandatory?

[AndrewB]

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).

[TurboTaxAniqua]

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.

Thank you for choosing TurboTax.

[AndrewB]

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.

[TurboTaxAniqua]

The payer has to fill out Form T1198 or provide the following information in writing to the employee: the year in which the lump-sum payment was made to the employee. a complete description of the lump-sum payment and the circumstances that required it to be paid. For more information please refer to CRA: Qualifying retroactive lump-sum payments

[AndrewB]

Perhaps I am asking my question poorly, because the answer I am getting is from the payer’s perspective.  I’m not interested in whether or not the payer needs to provide the T1198 info.    That has already been done.  It is the next step that I am asking about.  Am I required to submit/file it? Or is it my choice, if it is advantageous for me to do so?

[TurboTaxAniqua · Accepted solution]

@AndrewB Unfortunately, we cannot advise on this. Please contact CRA to confirm if you are required to submit T1198 or not.