Should I report income from a damage award when filing my 2023 tax return, or should I wait until I receive the tax slip?

[yeuchetnews]

I received a damage award cheque late December 2023. However, I have not yet received any tax slip for the award yet from the employer. Should I report this income when filing my 2023 tax return, or should I wait until I receive the tax slip for this income?

[TurboTaxSusan · Accepted solution]

It would depend on what the damage award was for. If it was for personal injury, then the award is not taxable. If the amount is for something like unpaid overtime or a similar compensation issue, then the damage award would be taxed. 

If this amount is taxable, then you should have a slip by now. Check your CRA My Account to see if it is there, or contact the employer to ask for the slip.

[yeuchetnews]

Thanks for the reply! The award is for unpaid overtime and I heard that it is taxable, but I didn't receive a T4 slip from the employer. I checked my CRA account and did not find any slips related to this award, so I'm not quite sure if I should report this income as 'other income' for the 2023 tax return or wait until I receive the T4 slip and include it for the 2024 tax return.

[TurboTaxSusan]

If you received the amount in 2023, then it should go onto your 2023 return. Again, contact the employer to ask for the slip, or contact the lawyer or whoever helped you get this award to see about getting a slip. 

If you don't get a slip in time, you can enter the amount as Other Employment Income.

[yeuchetnews]

Thanks for the clarification! I'll contact my employer.