T1198 Statement of Qualifying Retroactive Lump-Sum Payment

Updated: 2025-04-04

TaxCycle T1 is certified for electronic filing of the T1198 Statement of Qualifying Retroactive Lump-Sum Payment.

Certain retroactive lump-sum payments of $3,000 or more (excluding interest) may qualify for a special tax calculation by the Canada Revenue Agency (CRA). The CRA refers to these as Qualifying Retroactive Lump-Sum Payments (QRLSPs).

Beginning in 2025, TaxCycle allows you to enter the details of a QRLSP on the T1198 and submit it electronically with your T1 return. When a T1 return containing the T1198 is submitted through EFILE, the CRA will perform the special tax calculation based on the QRLSP information provided.

To qualify for the special tax calculation:

• The payments reported on form T1198 must have been paid to an individual for one or more preceding years throughout which the individual was a resident of Canada.
• The payments must have been made after 1994 and pertain to years 1978 or later.

For more information on filing the T1198, refer to the CRA page Qualifying retroactive lump-sum payments.