SCH 8 stop CCP contribution after 65 with self-employed income

T1
1

I post here and hope somebody could help me out.
I have a client who was 66 years old with self-employment income. The 2021 tax return was his first return in Canada after immigration. He had no Canadian pension in the year. He wishes not to contribute CPP for the self-employment income. I couldn’t complete the Sch 8 to overwrite the pre-set months in Box A. When I put 0 months in the box to not pay CPP, the software suggests I remove the 0 and says TaCycle calculated 12. I don’t know what is wrong and where should be done properly. Best regards, Kent

2

I have clients who have a Cpt16 religious exemption from CPP premiums, so I just override and when TaxCycle suggests I am wrong, I just check it off and then i can efile. So there is nothing wrong, other than I am not sure if they need to file a form to claim CPP exemption on self employed earnings.

3

Read the instructions.

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4

You should not need to over-write the number of months in Box A on Schedule 8.
As @Arliss suggests, maybe have a look at Part 1 of the schedule and see if that helps with the issue.

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5

As always you are much better with words. :grinning:

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Hi Arliss, I read and tried but not work. This is the first time I use TC. I think there must be something I have not done correctly somewhere else. According to my experience, it is a very straightforward task, but now I don’t know how to solve the puzzle with TC. Regards.

7

Try searching for form RC381 and line 50372 to elect not to contribute

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8

I believe the issue you are running to @ktips is you must be in receipt of CPP in order to elect to “stop” contributing to the Canada Pension Plan if you are between the ages of 65 and 70. If you are not in receipt of Canada Pension benefits I don’t think you can choose not to contribute.

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9

Schedule 8

Part 1
Line 50372
Month 01

This I did on my own personal return this year as I am 67+ and semi retired.

10

Yes @tome but you are likely in receipt of Canada Pension. If you were to delete the CPP slip from your return selecting month 01 in line 50372 would not help you, the software will calculate CPP contributions regardless of what number you enter in that box.

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11

"He had no Canadian pension in the year. He wishes not to contribute CPP for the self-employment income. "

.
Its nice that he wishes that.
However, the way I read S13(1)(a)(ii) is that he will have to wait another 4 years for his wishes to come true.
IMHO, because he does not appear to meet any of the “despite” paragraphs [(b) to (e)] of that section. (as snoplowguy might have been referring to above).

But maybe my memory is faulty and I am wrong.

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12

You make me laugh. You sound just like my former boss. :slight_smile:

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Thank you all. I got it done.

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Exactly. Thank you. I have done this kind many times, but this is my first time handling this new immigrant return who is not receiving CPP.

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“Thank you all. I got it done.”
.

Since his wishes do NOT qualify in LAW,
I am somewhat confused by the description of “I got it done”?

Hopefully you mean that the taxpayer WILL now be paying his CPP contributions.

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16

And I learn something new again :slight_smile:

Thanks

Tom

17

I have clients who are between the ages of 18 and 70 who are legally exempt from contributing to CPP by virtue of a CPT16. The only way I have been able to take care of this is by overriding the calculation. This has been necessary and accepted for as long as I have been preparing tax returns with computer.