Please help - so confused!
We are just in the process of doing our taxes this year and are a bit confused about how to proceed - my partner was wrongfully dismissed and so went through legal discussions and finally settled. We just got the final paperwork to sign off on by no T1198 that confirms the year in which the lump-sum payment was made to the employee; complete description of the lump-sum payment and the circumstances that required it to be paid; the total amount of the lump-sum payment, including a breakdown between the principal and the interest element, if any, of the payment, and the principal amount of the lump-sum payment that relates to the current year and each of the preceding years covered by the payment.
In the settlement, we have also been told the employer will be withholding a large amount to pay back the EI my partner had claimed during this time - they will be doing that directly instead of us. We have a T4E but now that they are saying they will be paying back the EI, do we have to claim the T4E since it’s like it was never used (if the whole thing is being paid back for end of 2024 until now)? Unsure how to proceed with taxes and no information really exists online on how to navigate this. I don’t want to submit the wrong information.
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