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Hello, I’ve been on approved LTD since 2020, and CPPD since 2022. Last year CPPD paid me almost $30k which I had to send to my insurance coming, so I didn’t keep. It’s been added to my taxes and now my income from last year put me in a new tax bracket owing thousands of dollars. I shouldn’t have to pay for income that I never had. The CRA can’t help me and isn’t offering any direction. Can you offer any suggestions on what I can do to not pay taxes on money that isn’t mine and what I can do to get around it? I can’t imagine I’m the only person who is going through this. Thank you very much
Thanks for your question, and I'm sorry to hear that this has happened. These situations unfortunately do happen, and we recommend applying for the Disability Tax Credit (https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit.html) as that should help offset the cost of the taxes owed. Your accountant should be able to assist with this.
Please don't hesitate to contact us again if you have any further questions.
Please don't hesitate to contact us again if you have any further questions.