Hi … i have a client that received a retroactive canada pension plan payment dating back to December of 2020 and received a lump sum in 2022. The large payment is the only income the individual received. For the 10 years prior to December 2020 the person received tax free disability Ltd. The researc…

https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1198.html [image001.jpg]

I thought Service Canada provided the retro breakdown automatically to CRA for such CPP payments without need for the T1198?

You file the T1 return to report the the entire T4A(P) slip on the client’s 2022 return. If it benefits the client to have the income allocated over different years the CRA automatically does this calculation from their end and assesses the 2022 return with the adjustments. The client will receive…

My client received several lump sum pension payments the last few years and was provided the T1198 filled out by the securities service that made the payments. We had to file the T1198 and paper file the T1 returns if we wanted the QRLSP to be assessed to prior years. The last one was small enough…

Thanks for the help. I saw the assessment. As was said in the thread previously, you just enter the slip normally and the CRA automatically accesses the taxes to the most advantageous amount for the years affected. The taxable income was adjusted in this particular case. Did not need a T1198 for CPP…

I have a similar situation. I understand the process, just want to confirm that we can efile this normally? No mail in?

Yes, CPP retroactive. I understand we report full amount on 2023 return and CRA will determine whether it’s beneficial to apply previous year amounts to previous tax years. Just want to make sure that I can efile this as normal and I don’t have to send special with a letter or something???

You do not need to do anything special on your end. You can efile the tax return as you normally would. The CRA will decide whether it is to the client’s benefit to allocate the income to the years which it relates. The return will normally be held up in processing for a bit. If you calculate th…

Hi! I have received a retro lump sum for my CPPD for 2023 in 2024. I just got my 2024 T4A and it just shows the total amount earned this year (2024 payments and the retro 2023 payment as one amount on line 20). There is no mention of retro payment. Based on what I read above, CRA is notified if it i…

CPP disability retroactive payment

Tax Topics

LMK March 26, 2024, 2:48pm 8

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CPP disability retroactive payment

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