pension overpayment claw-back and retroactive lump-sum payment taxed. What kind of special treatment will CRA give to QRLSP form?
A widow continued to cash her deceased husbands pension cheques for 9 years. Now, she applied for spousal benefits, and returned $37,000 in overpayments (because she gets only 60% of the husband's pension). My question: should the widow file Requests for Adjustments for each of the 9 years to show the lower income? Or, do we file the "Statement of Qualifying Retroactive Lump-sum Payment" (of $78,121) which Profile shows she still has to pay $26,000 income tax on that amount.