How do I claim settlement of a law suit

Good afternoon

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/nttxd-eng.html

for more information contact the cra at the following Phone: 1-800-959-8281

TurboTaxLee

You are also allowed to deduct legal fees in connection with obtaining this settlement, for the amount of the legal fees or the amount of the settlement, whichever is less. 

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/232/lgl-eng.html

It will depend on what the settlement is for.  Per CRA:

"(a) if the compensation is received for the failure to receive a sum of money that would have been an income item if it had been received, the compensation will likely be an income receipt"

Leanne provided a very helpful link for these situations, if you scroll down to "damages, settlements and similar receipts"

http://www.cra-arc.gc.ca/E/pub/tp/it365r2/it365r2-e.html

The settlement is for the loss of a taxable benefit

A taxable benefit is pretty clearly income related.  It would have been taxable had you been given the benefit in the first place.

Thank you That is what I thought but just wanted to make sure

You can always get a second opinion from CRA as well. 1-800-959-8281