Approved for CPPD

I wanted to thank the people on this site for the help they give and to david brennan for creating this site. Without all the useful information offered here, i dont believe i would have been approved, especially not on the initial application. Service canada actually called on Saturday, she was very nice and empathetic with her questions and then told me she was approving my claim and explained what would happen next. Next week would have been my 4 month mark so i was quite surprised because they told me last month the waiting period has increased to 6 months. Thank You again for making this stressful situation a little less daunting for me. The people here are invaluable!


I’m always glad to hear when someone gets approved.

Great news! This forum helped me immensely in my approval as well. :blush:


I was just approved for cpp disability pension and was inform that my insurance company will get the 14 months back pay.

My current insurance with them is tax free and now it looks like I will be billed for the back taxes.

Should I be receiving a credit for the tax charges from the insurance company since I have saved them a lot of money and what rights do I have if they refuse?

Great to hear you got CPPD.

I think you don’t have a choice except to pay the taxes.
Look into the DTC (Disability Tax Credit).
I think CRA can divide the back pay into the months it was earned so that maybe it spreads out the pain.


Thx for your response.

I just thought that equ. Life should credit me the tax charges-since I apply for CPP disability only because they ask me to.

One would think they would since I got them over $18,000 back and only apply as a favour to them.

I don’t know the legal justification or if it can be negotiated.
@David_Brannen probably knows. :slight_smile:

If you don’t get a reply here, I would get the free consult with a lawyer:
Free Consultation Request — Resolute Legal

This is a difficult situation with no clear answer. When LTD benefits were tax free, the LTD insurer always seeks full payment of the gross amount (before taxes paid). They do this in part because many people will the money back as a tax refund. So CRA taxes the lump sum, but you then get it back when you file a tax return. Once you know that you didn’t get it all back, you may have grounds to argue that the LTD insurer is only entitled to the net amount after actual taxes are withdrawn. You would need to provide them with your notice of assessment to show what was actually paid in tax after all refunds considered. Again, I have not know this to be successful, but it is at least a legal approach a person could explore.

David Brannen

Disability Lawyer with Resolute Legal

The response posted above is based on the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with a lawyer, fully explain your situation, and allow the lawyer enough time to research the applicable law and facts required to give an adequate opinion. The basic information provided above is intended as a public service only, a full one-on-one discussion with a lawyer should be done before taking any any action. The information posted on this forum is available to the viewing public and is not intended to create a lawyer client relationship with any person. If you want one-on-one advice, please click here to request a free consultation or call toll free 1-877-282-5188 to speak with a member with our disability claim support team.

Congratulations. This page helped me a ton too. I was surprised as well that my approval came within 4 months. I expected to be 6+ months.


Thanks for the info and I guess I will find out soon with them about the tax portion.

As I said I only apply because they asked me and I knew they would get credit and pay me less monthly because of the monthly benefit that I received from cpp disability.

This I can accept however I had no idea that they would received over 12 months money back pay from Cpp and now I am stuck with the tax on the 14 months amount of over $18,000 credit they will received.

I would think they should credit me the tax portion on the 14 months of the credit since I applied as a favor to them to saved them money.

I just wish I knew if I have legal right to go after them and would never have done this if I knew I would have to pay tax on over $18,000.00 for doing them a favor!

You may not be taxed on the entire $18000 in one tax year. Revenue Canada can spread it over the tax years that you would have received the benefits. This can lower the tax amount payable. You can also apply for the Disability Tax Credit as a way of lowering or removing the tax owing.

You had not choice but to apply because if you hadn’t they would have estimated and deducted the CPP disability amount anyways. Once you know the actual tax you pay (after getting any refunds), you can contact the insurer for a refund. They should only deduct the net amount after any refunds you get.

This is a legal tax loophole that creates an unnecessary burden of the claimant.

Speaking from my personal experience, the retroactive CPPD lump sum payment was paid to the insurer directly. The CRA did spread the lump sum CPPD payment (over 3 tax filing years) to alleviate the overall tax burden, but I still owed the CRA $3000.00 in taxes on the CPPD lump sum payment to the insurer.

When I was receiving the LTD payments (before applying for CPPD), the entire amount was tax-free. I never had to worry about the CRA.

I still don’t have the funds to pay the tax bill, so I’ve been accumulating interest on the balance owing ever since being approved for CPPD.

One can apply for DTC, but that does not address the pressing issue at hand. Unfortunately, CPPD is taxable and LTD payments (generally) are not.


You most probably won’t pay any taxes on this amount. The amount is not that high. Also CRA will spread it over past few years. Talk to a tax accountant.

Also apply for Disability Tax Credit. If approved you’ll get back a lot of taxes that you paid.

There are some benefits to you in getting CPP disability approved. I discuss these in the following article:6 Reasons to Apply for CPP Disability, Even Though the LTD Insurer Gets the Money