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April 10, 2022
Question

How do I file LTD payment for 2021 that was paid in 2022?

  • April 10, 2022
  • 1 reply
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How do I claim $8000. long term disability lump sum for 2021 is paid to me in 2022?

    1 reply

    May 1, 2022

    According to the Canada Revenue Agency (CRA), If you pay the entire amount of the disability premium yourself, your disability benefits will be tax-free. This may bring your income while on disability closer to your current take-home pay. If your employer pays all or part of the disability premium, your disability benefits will be subject to income taxes.

     

    You should be receiving a T4A slip regarding your LTD payment figures. According to the Canada Revenue Agency, you are to report your LTD payment figures on Line 10400. The equivalent of this line on TurboTax would be T4A Pension, Retirement, Annuity. To find this, sign into TurboTax Online, choose your tax return for the year, then:

    > On the left navigation pane, choose Income, then T-Slips, then T4a Pension, Retirement, Annuity.

    > Here you will "enter new T4A for xxx"

    > Then you will want to input the box number as shown from your T4A slip.

    Make sure to hit Continue so that your information is saved.

    For more information, check out: TurboTax - Guide to T4A Slip

    And also, Canada Revenue Agency - Disability Insurance

     

    Thank you for choosing TurboTax.