Add Comment Question: I am receiving LTD. My monthly payments are non-taxable. I have recently been approved for CPPD which my LTD will offset. I’m not disputing the offset as this is a term of the LTD contract. My insurer is trying to take the gross amount of the monthly CPPD but my LTD is non-taxable which will reduce my net monthly amount to less then what was approved by LTD. There is also a retroactive amount which they want to take the gross amount. I will then have to pay income tax on the amount they take which will put me out of pocket. The LTD contract does not specify if the offset amount will net or gross. Answer: Unfortunately, typically the insurer does have the right to take the gross amount as an offset. To help with the tax ramifications, you can and should apply for the disability tax credit. You can speak with your accountant or tax professional for guidance on that process. You can also talk to the CRA to have them split your retroactive amount over the number of years it encompasses to offset your taxes. If you have any other questions or concerns, please give us a call at the number below Your Comment * Your Email * Your Name * Your City Note, your name, city and email is not displayed on the website. It is used to notify you that we have approved your comment.