LTD company made a mistake and CPP-D paid me out my retroactive

[Elaine]

We talked about CPP/LTD lump sum payments and how they are taxed a lot on the forum. You can use the Search option in the top right corner. There are lot of helpful posts.

If you have a low income most probably you won’t pay any taxes on CPP lump sum. Here’s our discussion:

T4A Recieved for 2019 after CPPd approval last year

When you submit a tax return you’ll have to include the entire amount in the year you received it. In this case 2019. Attach all the forms on retroactive payment and yearly breakdown that you received from Service Canada when you submit your taxes!!! So CRA knows this amount is from retro pay. CRA will then apply some amounts to previous years or leave it in the current year. They will do what’s beneficial for you so you don’t pay much tax on it. Also you could’ve put some of retro pay into your…

There is more information on CRA’s website.

Line 11400 – CPP or QPP benefits - Canada.ca