I was approved for CPPD, which actually was not a good thing for me as I now have to pay tax which I did not have to pay before as my LTD is tax free,
Anyhow, I recently received a lump sum CPPD payment that is retroactive to early 2023, CRA has advised that the lump sum amount must be added to the 2024 tax return, but they will review it and assign the appropriate funds to the correct tax year automatically if it is in my best interest, so that’s fine, however when I re calculated my entitlement to the 2023 Government Benefits (such as the Trillium Benefit, the GST credit and the Canada Workers Benefit) using the revised 2023 taxable income figure, it turns out that I would have received a higher $ amount of benefits if this CPPD income was declared in 2023.
I asked CRA if the above noted benefits would be re calculated for 2023 at the same time as they are recalculating the taxes owed, I was advised no. So, I asked if they had overpaid the benefits would they have required a repayment, they said yes.
It doesn’t seem right to me that I loose my entitlement to the increase in benefit payments for 2023 because they took so long to review and approve my CPPD Application. In addition, the benefits noted, that are applicable to my 2023 tax return, are payable from July 2024 to June 2025, so I am still receiving the applicable benefits at this time. The under payment is a simple mathematical calculation that would take them 3 minutes or less to complete.
So, CRA said “If, upon recalculation, it turns out you have been overpaid for these benefits we would require you to repay us, however if it turns out that your adjusted 2023 income entitled you to an increase in benefits we will not make that adjustment and credit you” ?? This doesn’t seem right to me.