Filing CPP taxes for first time.

[livelovelaugh17]

Last year was the first year my father in law received his CPP benefits. He only received them for November -December so he didn't get much.

When he filled out his application he added for them to take off 15% for taxes. However his T4aP has nothing in the area for taxes deducted. Box 20 shows his taxable income, box 23 shows how many months but the box 22 for income tax deducted shows nothing. Does this mean they didn't remove any money for taxes? Will he owe when he files then, he was trying to avoid that.

 

[junohannah]

@livelovelaugh17 He may owe depends on what other income he says. It may just have not reached where they start taking off taxes since he only got it for 2 months. They also maybe haven't got it straight in their files so he should call and find out if he doesn't want to have to pay next year. He won't owe much tax on 2 months even if he is getting the maximum

 

[skyrue]

@junohannah Not how it works. Even if you get $100 a month and ask for any thing to come off for taxes they will take it off. It is taxable. Sounds like he may need to call and ask them to add a tax withhold. If he has a my service Canada account he can do it there as well

 

[livelovelaugh17]

@junohannah Thanks. That's his only source of income.

 

[audmanout]

@livelovelaugh17 I would not have touched that specially where he’s on it very new cause government is not perfect and all disability related income is all taxable. Most people breakeven people on disability don’t typically get a income tax return not a tax expert, but seen some thing things, and been through it. not sure like he could have investments or stocks, bonds property or you know just given you my two cents from what I’ve seen, especially if you’re living in a pretty good state of poverty.

 

[badwolph]

@livelovelaugh17 Since the max cpp $1364.60 per month or $16368 per year is and your basic personal amount $15000 that means you would only have to pay taxes on $1368 not including other deductions, so they probably aren’t going to take anything off since it so low. It also gets taxed lower since it’s pension income.

 

[cmq8775]

@badwolph Are you sure that pension income is taxed lower?

 

[badwolph]

@cmq8775 Your right it isn’t but I age amount for people 65 and over is $7898 that’s probably what I thinking about

 

[pyrhonn]

@badwolph 15k is fed exemption amount but also depends what your provincial exemption is…..there’s not just federal taxes

 

[perry2]

@livelovelaugh17 Why take anything extra off for taxes? Put it into a TFSA , he'll make more than enough interest to pay for whatever taxes he'll have to pay at year end

 

[livelovelaugh17]

@perry2 Because he doesn't want to deal with having to pay any taxes. Honestly, he's on the lower end of understanding scale. He didn't do taxes for almost 15 years, didn't have a bank account for almost that same amount of time. Only done odd jobs and lived with his daughter for the last decade. Opening accounts and transferring money around is not something he would quite be able to handle.

He wouldn't have much to put into a TFSA as it is. He doesn't currently have any other income, but is waiting for his OAS application to go through.

 

[perry2]

@livelovelaugh17 I was on CPP Disability for the entire year. I had to pay about $47 on my taxes this year. I strongly urge you to investigate this for him. He will be much better off not paying the government extra.

 

[audmanout]

@livelovelaugh17 Broke even for 10 years. They deduct almost half of your income from Disabilty and Income Assistance. They definitely taxable.