I’ve been approved for CPPD earlier 2017 and began receiving it along with my LTD payment from the insurance company. However, this incurred a rather large lump sum retroactive payment from CPPD to the insurance company as I was eligible to receive CPPD since 2016.
For tax year 2017, I now have a large taxes payable of 1.5k which would not have happened if CPPD was actually paid to me starting 2016 instead of as a lump sum to my LTD insurance company.
I feel this is unfair as this was entirely due to the timing of the lump sum being paid all in 2017. I know there are disability tax credits I can apply but it involves another application. Is there any way to reduce this CPPD taxes payable?