Service Canada payment made to LTDI - Tax time headache

General Discussion
1

Hi Folks,

I looked for answer to this question but couldn’t find anything apologize in advance if I overlooked it.
In my scenario my LTDI is taxed and I had asked SC to pay my LTDI plan directly any payment that I owed to them upon my CPPD approval so SC sent overpayment directly to LTDI in 2022 when CPPD was approved and they sent me a breakdown that included months in 2021 and 2022.

My T4A(P) includes amount paid to LTDI which i understand, my T4 Box 14 has the total of amount paid to me in 2022 but it is not reduced by the amount LTDI received from SC as that would have made my life easier instead I have now received an official receipt from LTDI for monies received from SC which I am suppose to claim somewhere in my taxes and for the life of me I can’t figure out where I would claim this amount.

Has anyone experienced anything similar to this or has any idea how to claim this amount on my taxes.

Thanks in advance :pray:

2

No experience with the situation, sorry.

Perhaps consider a consultation with a person at one of the free CRA tax clinics.

HTH

3

Thanks Amethyst, I will try that option :slightly_smiling_face:

2 Likes
4

Call CRA and ask them which line you “deduct” this amount so that it is not double counted.

Mostly, just make sure that “total income” from disability is the total gross amount you got from SC + LTD and nothing is double counted.

If you still have trouble, lots of free tax clinics will be up and running soon (or already are) and they can do this for you and file the taxes.

5

Doesn’t sound too complicated. At least CPP did it correctly for you! I asked CPP-D to send my LTD insurer any monies owing. I signed the form and sent it to my LTD company (as requested). They (my LTD company) NEVER SENT IT TO CPP! So when I got my lump sum, CPP sent it directly to me… was a nightmare trying to fix that.

6

Thank you all! I am able to claim this on Line 22900 – Other employment expenses, Repayment of Salary and Wages.

1 Like
7

Thank you for the details on where to state the repayment amount, @Canuck

Turns out I needed this exact information <3

8

This has been a major headache for me. CRA did not allow me to use line 22900.

I was advised to use line 23200. Still an ongoing issue, CRA has not gotten back to me after I re-filed

9

Do you have to pay tax on your LTDI payments?

10

Unfortunately yes I do.