I received my lump sum retro payment for CPP Disability today. There was no tax taken off. I am assuming I should simply transfer this over to my LTD insurer as such. However, going forward with monthly CPP-D payments, does it matter to my LTD insurer’s payments if I request federal tax be taken from my CPP-D first? Or should I not request that and simply set aside some funds for tax season? I assume the insurer will just subtract the gross amount before tax that I get from CPP-D from their payment? Thanks!
No difference to the insurance company, they will deduct the gross amount.
If it was me, I’d keep the money now and pay the tax later.
Get the DTC.
I have quite a large deduction for next year’s tax due to lawyer’s fees, so I think with that and putting a bit away that’s a decent idea. I will apply for the DTC however I’m not likely to get it as I don’t really fit one of the ‘boxes’ on the form with my condition. But I’ll give it a go, certainly. Thanks jammer! Now to get the energy to figure out my work battle.
I never fit it one box either but the cumulative effect of everything worked for me getting it.
Describe a day-in-your-life (or week).
After I signed the forms CPP-D sent the money directly to my insurer.
Yes, normally if you’re receiving LTD you fill out the permission form allowing that when you apply for CPP-D, however my LTD wasn’t approved until some time after, so that info was not yet received.
I just got the retroactive amount direct deposited to my account, so I think the next thing is figuring out how to transfer this to my insurer and figure out what I need for tax purposes.
Check your wording–they maybe only entitled to the net CPP-D and not the gross.
It wouldn’t matter - the amount I received was the same net and gross.
Now you have both payments your C.P.P is taxable So yesyou can havve money taking out monthly 100 ,200 etc Up to you .Taxes wont be much on C.P.P D Max is 1400 Maybe but on 1000 will say. A month taxes are around $100 give or take .Now your ltd is taxable if ur employer paid 100 % or any amout percentage wise …If you paid out of your check 100 you its tax free Hopee this helps?
Yes, thanks - my retro payment will go to my insurer once I am able to get in touch with them, and I can let them know to deduct the amount that CPP-D is paying from my LTD payment.
Oh they will do that Once you get your cpp they will deduct your payment from it Dont you worry buddy