T1198 Statement of Qualifying Retroactive Lump-Sum Payment

Tax Topics
5

@kozakworld Just saw the other post you commented on (Qrlsp - t1198)

  1. This taxpayer - T1198 QRLSP 2020 breakdown:
  • Current year = $0.00
  • 1st Prior year = $2,XXX.XX
  • 2nd Prior year = $1,XXX.XX

Also, they had a QRLSP slip in 2019.
CRA reassessed their 2019 return (done by another tax preparer) and completed the special tax calculation reducing taxpayers 2019 income from 3rd tax bracket to 2nd tax bracket** (refund increased after reassessment).

For 2020 taxpayer - 2nd marginal tax bracket.
2019 - 2nd marginal tax bracket (after CRA assessment)
2018 - 1st marginal tax bracket

Will CRA automatically do what benefits taxpayer with they receive the paper return or are they looking for direction from the preparer?
From the above 2018 has the lowest marginal tax bracket.

  1. Cover letter - what did you write on the cover letter to the CRA?