If I received retroactive pay with work, but I did not receive a T1198, how do I fill out the statement of qualifying retroactive lump sum payments?

[TurboTaxAniqua]

If you received a retroactive payment of over $3000 without a T1198 form, you must calculate the year-by-year breakdown of the payment (principal only). In TurboTax, use the "Find" feature to search for "T1198," select the form, and enter the total amount and the breakdown for each year, usually found in a letter from your employer.

Is the portion for previous years over $3,000? If not, you don't need Form T1198.

To clarify this information, you can contact CRA directly at 1-800-959-8281.

Thank you for choosing TurboTax.

[alicechoo7]

If the retropay was added to my paystub and my annual income and it was taxed, how do you fill out the section asking “did you receive qualifying retroactive lump-sum payments? (T1198)” if we answer yes, but we did not receive a T1198 how do we fill out the “statement of qualifying retroactive lump sum payment” section? 

[TurboTaxAniqua]

Are you using a DIY (Online version) or a Desktop version? 

[alicechoo7]

I am using a DIY online version on my computer 

[TurboTax_Susan]

@alicechoo7  The T1198 isn't an income slip, it's a request to take the income from the T4 and/or T4A and use a special tax calculation to tax the retroactive payments in the way they would have been taxed if you had gotten them in the right year. If you didn't get a completed T1198 from your employer, then you should have gotten a letter with the information needed to fill out the T1198.

FYI: you only have to fill out a T1198 if the amount of qualifying retroactive lump-sum payments is over $3000.  

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