Just received my t4 form ccp and it looks like ill have to pick up the bill for the retro money even though GWl took most of the cash does anyone know the % i will have to pay back
I just calculated my spouses taxes. He received 23,864 due to retro pay. After the disability tax credit and medical expenses -he will have to pay 329.00. That may not sound that bad–but I use to be able to use him as a deduction, transfer his disability credit and claim all medical. So getting CPP-D will cost us over 5000 in a refund.
His GWL is non taxable. He still has the retro-pay in a separate account and letting the court decide if GWL is entitled to the refund.
Studio Tax is available for download now for 2017 and you could calculate that way. Was your GWL benefits taxed–if they were you likely will pay next to nothing.
Yes gwl was taxed i usual go to h&r block as. I came from the uk and didn’t have to do taxes there but i was going to try it myself this. You advice as well as the other really gives me a boast thanks again
Studiotax is free and I find it easy to use.
Now that I think about it, I don’t think my CPP-D statement included the retro.
The retro was paid directly to the insurance company but it should still be on the t4a-p, right?
Eddie - You said your GWL LTD payments are TAXABLE, so the following statement applies to you and DOES NOT apply to anyone who receives non-taxable LTD payments (like Allyoops’ situation).
Since you already paid income tax on the GWL LTD payments you received, you will not pay income tax again on the CPPD backpayment that Service Canada sent directly to GWL in Nov/Dec 2017 (as per one of your other postings).
Here’s a detailed explanation from one of my earlier posts.
You will receive your T4A from GWL shortly. You will notice that Box 107 on this form will show the gross amount (i.e. amount before income tax deductions) of all LTD payments GWL paid to you in 2017 LESS the backdated CPPD payment GWL received on your behalf from Service Canada. Box 022 on the GWL T4A will show the full amount of income tax deducted by GWL from your LTD payments throughout the year.
To summarize, although the 2017 T4A(P) you received from Service Canada included your backdated payment in box 16, this amount will be offset by an an equivalent reduction shown in Box 107 on the T4A you will receive from GWL for 2017.
This should be a completely neutral situation for you.
Eddie - sorry, I mis-read one of your notes. It looks like you received your backdated payment from Service Canada in 2017 and then you paid most of it to GWL (i.e. you did not authorize Service Canada to reimburse GWL directly).
My above posting is technically correct IF you received your CPPD backpayment from Service Canada in 2017 and you reimbursed GWL for the backpayment also in 2017.
If you DID NOT reimburse GWL for the CPPD backpayment you owed them UNTIL 2018, then you will run into a timing issue, as GWL will not be able to reflect the reimbursement on your GWL 2017 T4A. There are other methods to reflect the reimbursement to GWL, but again, if you didn’t pay them back until 2018, you mayl still have a timing issue.
Regardless, you WILL NOT pay income tax on the CPPD backpayment payments twice, although you may have a timing issue from a tax situation which can be sorted out.
Did you pay GWL in 2018 or 2017?
Sorry if im confusing everybody i received a cheque from sevices canada 2017 i then send a cheque to gwl 2017
Eddie - that’s very straightforward since you received the CPPD backpayment in 2017 AND repaid GWL in 2017. You will be in a neutral situation and will NOT need to pay any additional tax in 2017 due to the backpayment.
You are not confusing everyone! This is a complex situation which is faced by many of us.
Thanks you are kind people iam struggling with all this as well as the parkinsons but the messages and support im getting is great i phoned the dtc people and they said they are assessing. My previous years taxes and i should get an answer in four weeks
1 Like