Taxable Benefits
New Member

Taxable Benefits

Hi, 

 

I bought an employment insurance for my domestic helper outside of Canada. Recently, there was a payout from the insurance policy regarding my helper's medical condition covered from the employment insurance policy. 

 

My question is - when I file my personal income tax in Canada, is the payout from the insurance company taxable? If so, where (which line in tax form) should I put it under? 

 

Thank you,

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Level 6

Filing

Hi, thank you for using Intuit turbotax Live Community

Most taxable payouts would be reported on a Canada Revenue Agency (CRA) information slip such as a T4A. The payer of the benefit would issue the slip. The T4A would be then entered in turbotax. If you are not sure if a slip will be issued or if this is foreign sourced income  check with the payer; they should be able to give you details on how the benefit should be handled.

Hope this helps 

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New Member

Filing

Hi, 

 

Thank you for your response. The payout is from an insurance company outside of Canada, so it's logical to be reported as foreign income. My main question is - whether or not the insurance payout (as a covered benefits for the employee, but paid to me the employer) taxable or not according to Canadian taxation? 

 

Thank you again, 

 

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Level 6

Filing

Hi, thank you for using Intuit turbotax Live Community

This is not a common type of payment; I am not sure you will receive an answer here. You may need to discuss the issue with the Canada Revenue agency(CRA) at 1-800-959-8281. You could get details of the type of account and payment and then discuss the scenario with CRA.

Hope this helps

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