Add Comment Question: Who pays the taxes on retroactive cppd if it goes to the insurers and what happens with my taxes next year if the insurers get the money not me as I've already paid taxes on the money the insurer has given me Answer: Generally, you are responsible for the taxes on CPPD payments both retroactively and going forward. To help offset a large one-time tax bill due to the retroactive payment, you can ask the CRA if they will accept a payment arrangement in which they spread the lump sum over two or more years. This will reduce your taxable income each year, thus lowering your yearly tax amount. You can read how to do this, and find more information on the CRA website. You can also apply for the Disability Tax Credit to help with this. it can be applied up to 10 years retroactively. We recommend speaking with Disability Credit Canada (https://disabilitycreditcanada.com/). They can help you with the DTC application and if any issues arise. You can let them know we referred you there. 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.