Skip to main content
TurboTax
Community
TurboTax
Community
TurboTax
Community
T
themartialsart
April 21, 2022
Question

I rec'd a severance package from work, it was deposited to my RSP from my employer. I rec'd a cont. slip but no income slip. Is this correct?

  • April 21, 2022
  • 1 reply
  • 0 views
No text available

    1 reply

    A
    Antomeister
    April 23, 2022

    According to the Canada Revenue Agency (CRA), this is indeed correct, you should not receive the severance pay as taxable income and therefore will not reflect on your T4 slip. The reasoning behind this is that you have deposited it into the RRSP and if you do decide to withdraw the money, it will have to be reported as taxable (Because all RRSP withdrawals are considered taxable income before retirement). However, you must report that you put the severance pay to your RRSP as a contribution.

    For more information, check out: Canada Revenue Agency - Understanding your severance pay

     

    Thank you for choosing TurboTax.

    TurboTax Sign In Widget
    TurboTax flag icon

    Unlock tailored help options in your account

    Create an account
    TurboTax Expert Assist
    TurboTax Expert

    Get answers to all your tax questions

    Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.

    Terms & ConditionsCookie settingsAccessibility statement
    Intuit
    TurboTax Credit Karma QuickBooks MailChimp

    ©1997-2022 Intuit, Inc. All rights reserved.
    Intuit, QuickBooks, QB, TurboTax, ProConnect, and Mint are registered trademarks
    of Intuit Inc. Terms and conditions, features, support, pricing, and service options
    subject to change without notice.

    Security Certification of the TurboTax Online application has been performed by
    C-Level Security.

    By accessing and using this page you agree to the Terms of Use.

    Accessibility

    TRUSTe nResult Certified e-File C-Level Security Certification