Line 13000 – Other income: Retiring allowance

A retiring allowance is an amount you receive on or after retirement from an office or employment in recognition of long service. You may also receive this amount if you lose your office or employment, whether you were dismissed or resigned.

It may include payment for unused sick leave and amounts you receive for loss of office or employment, whether as a payment of damages or a payment under an order or judgment of a tribunal.

It does not include accumulated vacation leave credit or income from a retirement compensation arrangement.

A retiring allowance may be made in lump-sum payments, but you must include them in income when you receive them.

Generally, the amounts should be shown on the following slips:

If your retiring allowance is shown on a T3 slip, details will be shown in box 47 and in the footnotes area of the slip.

You may be able to contribute (transfer directly or indirectly) all or part of your retiring allowances to your registered retirement savings plan (RRSP), registered pension plan (RPP), pooled registered pension plan (PRPP), or specified pension plan (SPP). For more information, see Transferring retiring allowances (severance pay).

Tax will not be withheld from the part of your retiring allowance that your employer transfers directly to your RRSPRPP, PRPP, or SPP.

Tax will be withheld from the portion of your retiring allowance that is not transferred directly to your RRSPRPP, PRPP, or SPP by your employer.

You may be entitled to deduct legal fees that you paid to collect or establish a right to a retiring allowance. For more information, see line 23200.

A loss of office or employment usually refers to the elimination or expiration of a particular office or employment, for example, the abolition of a job or position for economic reasons or as the consequence of an employer's withdrawal from a particular business. However, a loss of office or employment may also refer to the loss of an income source of an employee who is released from an office or employment whether unilaterally or not.

Completing your tax return

On line 13000 of your return, enter:

If you transferred an amount, complete and attach Schedule 7, RRSP, PRPP and SPP Unused Contributions, Transfers, and HBP or LLP Activities, to your paper return.

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