CPP-D back pay and provincial disability Benefits

Ok so the situation I am currently in is as follows

Mid year 2020, I got approved for CPP Disability and I am already on the Provincial Disability benefits. I received a call from CPP-D once the decision was made. The person that called me covered the basics and adivsed me that CPP-D is taxable BUT, he stated that he had ALREADY issued the lump sum back pay to Provincial Disability WITHOUT any taxes being deducted.

Currently, after a prelim write up on my taxes, I NOW OWE the government nearly $2000 in taxes due to this (2 1/2 years back pay = $24000), and i DO have the Disability Tax Credit which reduces it to $365 (something I STILL cant afford to pay on my current income). So far, I cant even get through to the CRA to see whats up (the ususal “we are too busy”… click) and I’m looking for better advise than “just pay it” that I’ve been getting so far. I feel that BECAUSE I was never given an option to be taxed that this is somehow not legal but, I’m no tax professional or legal expert. I’ve read thru other stories here and it seems like the CRA can split it up for each year but what do I need to provide for this to happen? Does the CRA already have this info? Like the per year breakdown in the official decision once I was approved? What form (if any) i should request to fill out etc etc…

Can anyone provide me with info on what to do here please? Thank you in advance as well

bump, hoping for a reply as none after 4 days :frowning:

Sorry for not replying sooner.
I think you can get the taxes adjusted so the back pay is taxed in the years it should have been for.
You can also do a payment plan.
I think you need to talk someone at the cra.

Thanks Jammer. Ive been trying to get through to the CRA but constantly getting “Too busy, try later” click…

This is getting frustrating cuz NOW im going to have to pay H&R Block when i submit my taxes where i OWE moneys too…

I thot that if u get approved for disability that they only go back 11 months for retro back pay? How did u manage tl get 2.5yrs of back pay?

@Candygirl, I thought the same, I don’t know why the got 2.5 years of back pay.