Form T1198, Statement of Qualifying Retroactive Lump-Sum Payment, is a legal document that individuals and companies residing in Canada can fill out if they paid a lump-sum payment in the last twenty-five years to ask the tax authorities to compute taxes differently for the beneficiary and spare them from the necessity to pay all taxes at once.
This form was issued by the Canadian Revenue Agency (CRA). The latest version of the document was released on January 1, 2021, with all previous editions obsolete. Download a fillable Form T1198 via the link below.
If you got a significant amount of money from a former spouse who finally sent you money to compensate the child support they owed, obtained money after a court order or lawsuit settlement, or received insurance, pension, or income replacement benefits, you may face tax liability that is difficult to cope with. In this case, the person or entity that provided the lump-sum payment needs to file this statement on your behalf - the tax amount will be adjusted and spread over several years.
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