Hi there I got approved for CPPD and started receiving payments in September 21’. Canada life got the back pay from 2018 to 2021. I received my T4 and it shows I got paid $50,000 for 2021 but it doesn’t reflect that it was from 2018-2021. Do I have to claim that lump sum amount for just one year or can it be spread out over the 4 years. I don’t want to owe a crap load of taxes. I cannot afford that.
Thanks for reading Im kind of freaking out.
Awesome to hear.
You can have it spread out.
Call CRA to find out how.
CRA will automatically assess this over the years it was paid. They always send a single T4A like this. Also, when you were approved for CPP disability Service Canada would have mailed you a “Payment Explanation Statement” that showed the breakdown of the $50,000 retroactive payment over the prior months and years. Revenue Canada should have access to it, but you can also provide it to them
David Brannen
Disability Lawyer with Resolute Legal
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