If you receive CPP-D you are allowed to earn income up to $6500 per year. You do not contribute to CPP on this earned income while you are receiving CPP-D (See Canada Pension Plan Disability Benefit Toolkit, page 4). The problem for those of us disabled who are able to earn income is that this information is not easily available to the disabled community, in large part because few at the Canada Revenue Agency, which is responsible for collecting CPP contributions, know that those receiving CPP-D do not contribute to CPP on earned income.
I know this from personal experience. I receive CPP-D and earn a small income working self-employed from home. For the first three years I received CPP-D I did not know that I was not supposed to contribute to CPP. Then I got a notice from the CRA telling me that I was being refunded three years of CPP contributions. The notice referred me to the regulations that I mentioned above. Since then, for last three years, I have not deducted CPP contributions from my earned income and yet, each of those three years my tax return is assessed by the CRA who then deducts $300-$400 in CPP contributions. I then have to appeal and refer the CRA to their own regulations. And each year the CRA eventually agrees that I do not contribute to CPP and I wait up to two months to get my money back. I have twice called the CRA and complained and both times the agents had no idea that those of us receiving CPP-D do not contribute to CPP. It’s frustrating that the CRA does not educate their agents to know their own regulations.
Also included as Income is payment received as an Estate Executor, and if you go over the $6500.00 income in a year, your CPPD benefit can be reduced.
That is good to know. Thank you.