Does anyone know if private ltd is considered as income when the application process opens up for the new Canada disability benefits. They will want to know the household income and I’m just wondering if i should mention it or not. Its not taxable, no mention of that on my income taxes. I’ve been searching for this answer for a while now and so far no luck. Hopefully David can help
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We don’t know the answer to this yet. We are waiting for clarification from Service Canada. I expect that taxable LTD benefits will be included as income for purposes of the Can Disability Benefit. However, it is not clear if non-taxable LTD benefits will be included as income. I expect they will be, but we need to wait for government to confirm. I expect to know this once the application process is confirmed it should be clarified then.
The reason I think it will be included as income is because the CBD is intended for those with low income and it is possible for people receiving LTD to have very high income. So, I think they will include the LTD in the calculations that people with low income (that includes LTD) will qualify.
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 1-877-917-7050 to speak with a member with our disability claim support team.
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I thought I read the cutoff is going to be really low, ~$20k.
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The basic threshold for a single person is $23,000, but your first $10,000 in earnings is exempt from this. So is really $33,000.
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Applications open June 20th! Seems I qualify, just still not 100% sure if they will included NON taxable LTD in the calculation but doesn’t seem like it. I really could use the extra couple hundred dollars every month! Essentially would feel like a lottery winning at this point things are so tight.
EDIT: Good to go with non taxable LTD as they use line 23600 on NOA.
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Sorta sucks I got severance in 2024.
Hopefully they have it next year too.
Just got my letter today to apply tomorrow! Looking good for those of us that are on LTD/CPPD/DTC!
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There is an estimator out now Canada Disability Benefit Estimator - Canada.ca
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Wow that was the quickest and easiest application i’ve ever filled out! It says decision within 28 days and if approved (no reason why I wouldn’t be) payment starts next month!
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Anyone know if this will be clawed back from the Insurance companies, like CPP-D? And is it taxed?
It’s a government sponsored program so likely yes, unless your LTD contract actually specifies CPP-D only (which I’ve never seen before).
Not sure about the tax situation.
Damn, I jumped the gun and applied before I asked if it would be clawed back.
Re non taxable LTD benefits and CDB: CRA/Service Canada uses your Net Income (line 23600 of your 2024 tax return) to calculate your CDB. If your LTD benefits are non taxable and not reported on your tax return, they’re not included as income for CDB purposes. Here’s a list of the types of income they consider: Step 2 of 2: Income - Canada Disability Benefit Estimator - Canada.ca
I don’t know if insurance companies will deduct the CDB from LTD benefits. I would think that if they’re going to claw back the CDB they’d first have to confirm that you’re receiving it and how much you’re receiving. The amount varies, so they can’t just deduct $200 from your monthly benefit. Then they’d have to notify you that they’re reducing your benefits, when the clawback takes effect, and by how much. This is just my guess, a lawyer would be able to confirm.
Sure they can.
Just like CPP-D, estimate and deduct until you prove you get less.
I disagree.
Insurance companies don’t know if you even qualify for the CDB. They may know that you get CPPD, but not the DTC. Not all people on LTD qualify for the DTC. I was on LTD for nearly 10 years before I applied for the DTC, because it took years to find a doctor who was willing to fill out the form. No DTC means no CDB. I didn’t have to report to my insurance company when I qualified for the DTC.
What if you don’t even apply for the CDB for some reason? Are they still going to take $200 off of your LTD payment anyway? What if you get less than the $200, do you think they’ll just deduct the $200 anyway? That makes no sense.
I’m sure it depends on your policy as well. I don’t know if some policies force the insured to report any CDB they receive to the insurance company. I don’t have to report other government payments, like the climate payment (now discontinued) or how much GST, tax refund or Ontario tax rebate I get. My policy requires that I report certain amounts like inheritances or lottery winnings. But when I got a settlement from my last employer I didn’t have to report that.
I doubt they can just start deducting money from your benefits without at least contacting you to inform you, and/or to confirm whether you’re receiving the CDB and how much you’re getting. Again, a lawyer would be better able to answer that question.
I know if my insurance provider started arbitrarily deducting funds from my LTD benefit for any reason without prior notice or explanation, the first thing I’d be doing is talking to a lawyer.
I don’t think that an insurance company would be able to claw back the CDB unless they first confirm with you that you’re receiving it, and how much you’re receiving.
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I get a questionnaire at the end of every year from the Claim Lab.
I expect one of the questions to be added this year will ask if I get the CDB and how much.
Or maybe they won’t claw it back (but I expect each insurance company to be different).
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Right now we are not sure how insurers are going to treat the CDB. During the legislative consultation hearings they said they did not plan to claw back the benefits. There was a push form some senators to include an amendment to the law that would prevent any insurer from clawing back. But that was not adopted in the final legislation that passed the House and Senate. Whether any insurer can claw back will depend on the wording of the INDIVIDUAL insurance policy in question.
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I asked my insurer how they will treat it.
I expect a reply before the end of the year, LOL.
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LOL i’m guessing they will treat it like LTD annual increases. They won’t bother with it.
Got a reply but I think they think I meant cpp-d.
I don’t think think the front line people are going to know.