Retroactive payments and support-payment arrears
Retroactive payments and support-payment arrears
If you received a retroactive payment in 2024, you must report it on the appropriate line of the return. If at least $300 of the payment applies to previous years, we can, at your request, determine whether it is to your advantage to average that portion of the payment. If it is, we will calculate the income tax payable on that portion of the payment as if you had received it in the previous years concerned and will deduct it from your taxable income for 2024. We will then enter a tax adjustment on line 443. To find out what amounts can be averaged, see form TP-766.2-V, Averaging of a Retroactive Payment, Support-Payment Arrears or a Repayment of Support.
If you want us to do the calculation, report the payments on the appropriate line(s) of your return and check box 404. Also complete form TP-766.2-V and enclose it with your return. If you complete Part 4 of the form, check box 405 of your return.
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IMPORTANT We cannot average your retroactive payments in the following cases:
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