Taxed twice on the sisip lump sum from the class action lawsuit.

Lone eagle, the retro wasn't taxed twice. 30% was deducted at source for "withholding tax". this is basically an estimate on the taxes that will be owed. That amount would be indicated on your T4 from Manulife. But if CRA failed to use the included 1198 form, the total amount from your retro, and interest, would be added to normal annual income. This would probably bumped you up to the highest tax brackets, 26% on any amount over $84000 and $136220, and 29% on any amount above that. IF they used the 1198, it would say so on your notice of assessment. If it doesn't tell you it was used, or that it did not assist you in lowering your tax burden, then you will have to submit a T1 adjustment request to CRA, with a copy of the 1198, and copies of all your T4's as well won't hurt. I just went through this week as well, as did many of the posters on the site.

Not sure exactly loneeagle your question. Did you not receive a form 1198 and include it with your tax return.

No other way to put it. I have to pay in $15,000 !  The lump sum was taxed, interest involved, fees etc Final number was $54,000. Then I received a T-4 only to find out it was being taxed again. Is that even legal?  Should I question CRA on it? I went and saw an accountant who told me to gather up all my tax returns dating back to '08 simply because a statement I received from them (Manulife) out lines the percentage and how much over each year up to last year. Once that is done, they take over and see what they can do to see me pay less to the CRA. Anyone else going through this?