Question about CPP-D offsetting LTD payment - tax?


#1

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!


#2

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.


#3

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.


#4

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).


#5

After I signed the forms CPP-D sent the money directly to my insurer.


#6

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.