I applied for CPP-D almost 2 years ago and when I did it my LTD company made me sign the irrevocable form that allows Service Canada to send them the retroactive payment directly. I filled this out, signed it and sent it to my LTD company. They were supposed to fill out the bottom portion and then send it to Service Canada.
Flash forward and I got approved for LTD last month and was told I had almost $25,000 in retroactive payments I assumed would be paid out directly to my LTD company. Well, CPP deposited the entire amount into my bank account. Needless to say I was a bit shocked when I logged into my bank account and saw all that money.
CPP said they never got a revocable consent form and my LTD company case manager apparently forgot to send it. I haven’t heard anything from my LTD company yet. I think my case manager may have quit when he found out he made the mistake and I don’t know if he told anyone on his way out (doubtful). I feel like he hid the error and then quit and someone will discover it later.
How is this going to affect my taxes? If they ask for me to pay them the whole amount back, can I deny, and tell them to deduct it from my future payments? I am worried about how high my tax bill will be next year.