CPP disability and income tax


#1

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?


#2

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.


#3

Ya, talk to a tax expert.


#4

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

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