Ontario Teachers - T1198 - QRLSP - Bill 124

Tax Topics
1

Many ontario public employees have received a Qualifying Retroactive Lump Sum Payment (QRLSP), over $3000.

My school board received confirmation from CRA that the years following the first 3 years of the arbitration do not qualify to be included on form T1198. As a result the board will issue a letter, in lieu of the T1198 form, for all employees who meet the requirements for the Qualifying Retroactive Lump Sum Payment (QRLSP).

If there is no T1198, what good is this letter? How can I use this letter on my 2024 taxes. Any suggestions?

2

I have a friend who received a similar letter from their board. CRA’s information says that is ok. It probably would have been as easy for the Board to complete the T1198. I told him to file the return as normal, including the lump-sum in income for 2024. I told him to wait for the Notice of Assessment and then send the lump-sum letter with a covering letter asking CRA to do the special calculation with respect to the lump-sum.

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