CPP disability and income tax

I have just been approved for CPP disability. It is retroactive to August 2016. My problem is that since I have not been working I have been on LTD which is not taxable so for Revenue Canada I have been claiming half of my spouse’s work pension the last 2 years since it was a better tax break than claiming me as a disabled dependent because I had no taxable income. I now am looking at having a retroactive tax bill so because of that I expect since my income included half of a $50000 pension that had tax deducted from it. My question is are we better off to continue with this arrangement or should my spouse now claim their entire pension and me as a disabled dependent? And how does that affect the back income tax I will owe? What should we do when we file this year, knowing what is coming next year, should we still split the pension income?

Hi Patsy, You have quite a few questions and your situation is very specific. I recommend you consult a tax expert for advice, as full information about your situation and your husband’s would be required for somebody to provide this advice.


Ya, talk to a tax expert.

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You should speak with a tax and financial planning expert. This goes beyond the type of advice we can offer in this forum.

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.

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