Tax receipts for any last minute buybacks
If you bought back a leave during the same tax year in which you began collecting a pension, you'll receive a T4A from us for the pension adjustment resulting from your buyback. If you paid for your buyback in cash, you'll also receive a tax receipt from us to claim as a deduction. You'll need to include both of these in your tax return.
Gratuities are not tax-free
You may have received lump-sum payments, or gratuity payments, from your employer when you retired. These are considered taxable income, unless you transfer them into a Registered Retirement Savings Plan. If you opted to keep all or a portion of the cash, be sure to budget for the applicable taxes.
Combined incomes mean varying tax rates
In the year you retire, you'll have a combination of employment income and retirement income. And if you received a gratuity payment, that will be additional income. All sources of income will be taxed at different rates, so make sure you plan ahead to avoid owing money at tax time.