Amounts received due to an accident have to be reported in line 10400 – Income – maintenance insurance plans (wage-loss replacement plans) of your tax return. This line contains the income from employment that is payable under a sickness, accident, disability, or income maintenance insurance plan. Note, that if you have paid the entire cost of the plan, the amount that you received is not taxable. Please also consider that you may not have to report the full amount on your return if you and your employer have made contributions to your insurance plan. The amount that you will have to report will be the amount received minus contributions you made to the plan after 1967 if you did not use them on a previous year’s returns.
To enter amounts received from insurance due to accident you will need to file the T4A, please follow the steps presented below:
- Go to the top right of your tax return and select "Find” from the menu, and type “T4A”
- Select “T4A Pension, Retirement, Annuity and Other income” from the list of results, then click “Go”
- Click on “Enter new T4A”
- Scroll down and find box number 107 “Payments from a wage-loss replacement plan” and enter the amount that you have received from your insurance due to an accident.
- To save the information, click on Done with T4A.
Please visit, Reporting payment from Wage-Loss insurance policies for more information.
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