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