Got my retro info letter today - tax info


#1

I scanned and ocred the tax part (It may help someone):

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Canada Pension PIan(CPPJ DisabiIity - Tax Information Sheet for Reimbursement to a Private Insurer

Do l have to pay taxes on the money I receive from CPP?

Yes. The CPP disability benefit is taxable, incIuding the amount paid back to your ǐnsurance com- pany. This means that you could owe income tax when you file your next tax return. lf you think you may have tax to pay, you shouId consider setting aside an amount to cover any taxes you may owe at the end of the year.

Any benefits paid for your chi Idren are their income, even if you received the payment.

Refer to your General Income Tax and Benefit Guide, Line 1 14, for more information about CPP disability benefits.

Can l have tax deducted from my regular monthly CPP disabilîty benefit payments?

Yes. Please send us a wri_en request or call our toll-free number (on page 2) telling us the amount you would Iike to be withheld each month.

When it is time to file my tax return, what do l need?

You will receive a T4A§ slip from Human Resources and SkiIls Development Canada in Februay.

Keep the CPP letter and the Payment Explanation Statement for your records.

What do l do with this T4A§ slip?

Report the full amount of CPP disability benefit(s) including the amount paid for the previous year(s) on line 1 14 of your income tax return. Refer to your General Income Tax and Benefit Guide, Line 1 1 4, for more information on how to report lump-sum CPP disability benefits.

If the total of the lump-sum that relates to previous years is $300 or more, the CRA will automatically determine whether:

_ it is to your- advantage to tax the full amount of your CPP disability benefit income in the current year; or

_ to tax the parts of CPP disabiIity benefits that relate to previous years as if you had received them in those years.

Is there anything else l need to report on my tax return?

Yes. Depending on whether the disability insurance benefits you receive from your insurance company are taxable or non-taxable, you may be able to claim a deduction.

How do l know if my disability insurance benefit is taxable or non-taxable?

If you are not sure if your disability insurance policy provides a taxable or non-taxable benefit, please ask your insurance company or employer.

What do l need to do if my disability insurance benefit is taxable?

lf your private insurance disability benefit is taxable, you would have reported this disability benefit on previous tax returns and paid the taxes. As the full CPP disability benefit is also taxable, you should claim the amount paid directly by CPP to your insurance company as a deduction in your tax return for this year.

It is important to claim this amount paid directly by CPP to your insurance company so that you do not pay tax twice for the benefit.

Refer to your Income Tax and Benefit Guide, Line 232 - Other Deductions, for more information.

What do l need to do if my disability insurance benefit is non-taxable?

If your private insurance disability benefit is non-taxable, you would not have reported this disability benefit on previous tax returns and paid the taxes.

Therefore, you cannot claim the amount paid by CPP to your insurance company as a deduction in your tax return. You will be taxed on the full CPP disability benefit including the amount paid directly to the
insurer.

Are You Eligible for the Disability Tax Credit?

The Canada Revenue Agency (CRA) has a tax credit that a person with a qualifying disability can claim to reduce the amount of income tax payable. Contact CRA using the information below to see if you are
eligible to claim this.

How to reach CPP if you have questions

By phone
_ 1 800 277-9914 (toll-free)
_ 1 800 255-4786 (for TTY users)
_ From outside Canada and U.S. (English and french) 1 613 957-1954

When you call, please always give your Client Identification Number.

Internet
_ _. servicecanada .gc .ca

How to reach Canada Revenue
Agency by telephone - Toll-free
from Canada and U.S.:

_ 1 800 959-8281 (for general information)
_ 1 800 665-0354 (for TTY users)
Internet:
_ _. cra-arc .gc. ca/d isab i l ity


#2

We are about 5 days behind you,we got this letter this wed. Have you received your retro pay yet,we have not.


#3

I signed the form so my retro pay goes right to the insurance company.
I haven’t received a new notice from them yet with the new amount they’ll pay.


#4

Thanks. We are waiting for payment as we are sueing the ltd. They never paid any ltd.