My wife received an arbtration award and received a "Statement of Qualifying Retroactive Lump Sum Payment (QRLSP). How do I add this to my return?

My wife received a Statement of Qualifying Retroactive Lump Sum Payment (QRLSP)

It has a few boxes (6850,6851) and then three other boxes with numbers pertaining to taxation years boxes (6899,6900 and 6901). My question is how do i correctly input this information to our returns? 

Answer

8 people found this helpful

According to CRA, the QRLSP income indicated on the statement has to be reported on the recipient's information slip (such as a T4, T4A, T4E).

Therefore, your wife should have the items in the above boxes in one of those three forms (T4, T4A or T4E)

Also note that since she is a recipient of a QRLSP and if the amount shown under "Total principal (prior years only)" is $3,000 or more, she needs to attach Form T1198, Statement of Qualifying Retroactive Lump-Sum Payment to her return for the year of payment to ask for a special tax calculation. If there is more than one QRLSP form, add the amounts shown under "Total principal (prior years only)" on all your forms. If the result is $3,000 or more, attach to your return the QRLSP forms that payers have given you.

Was this answer helpful? Yes No
Default user avatars original
Employee

No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community