What is the CPP disability retroactive payment?

What is the CPP disability retroactive payment? In this video we explain the CPP disability retroactive payment. After watching this video you will understand how the CPP retroactive payment works and how the payment amount is calculated. Sponsored by: Resolute Legal Music: Sunny | Bensound.com What to learn more? Check out our Ultimate Guide to CPP Disability: https://www.resolutelegal.ca/cpp-disability-benefits Need help? Contact our support team for a free consultation: https://www.resolutelegal.ca/free-consultation Visit our Website: https://www.resolutelegal.ca/ Subscribe to our newsletter: https://www.resolutelegal.ca/insider-newsletter/ Video Transcript: Hi I'm disability lawyer David Brannen. In this video, I'm going to cover the CPP disability retroactive payment. After watching this video, you'll understand what this payment is and how it may apply in your situation. The CPP disability retroactive payment is a one time payment made to people who were approved for CPP disability benefits. Once you're approved for CPP disability, you'll start receiving month to month payments. But you also get this one time retroactive payment. The retroactive payment is meant to cover the period of past months where you qualified for benefits while Service Canada was processing your application. Most people who are approved for CPP disability will get a retroactive payment of some degree. Although the amount of the payment will vary greatly from person to person, depending on how long it took Service Canada will approve your claim and also when you applied for benefits after becoming unable to work. So, for example, if you apply for benefits very soon after you became unable to work, it's possible if Service Canada processed and approved your claim very quickly that you would not be entitled to any retroactive payment. On the other hand, if you were waited up to a year before applying for CPP disability and then it took them up to a year to approve it, you can be certain that you would be entitled to a retroactive payment of benefits. This is an area that a lot of people get confused about. The most important thing to understand is that the retroactive payment is calculated based on the date Service Canada received your application. It has nothing to do really with the date of your disability. Rather, it's based around the date they receive your application for disability. Your retroactive payment can go back up to 12 months before that date, and then we'll go forward from that date up until the time they approve your claim. So that becomes a retroactive payment. However, in some situations, it will not always go back the full twelve months. In some situations, if you've been approved quickly and that your date of disability was very close in time to when you actually applied, you may not get the full twelve months. You may get partial of those months, or maybe none of them at all. That's just something you'll have to figure out once you file your application and get the approval. CPP disability benefits are taxable, including this retroactive payment. Now you won't necessarily be taxed on the entire amount in the year you receive it. Sometimes you'll go to a tax person and they won't understand that. And they'll start to do that and say you owe all this money for taxes. However, understand that you can request that Revenue Canada spread the taxation out over the years when those benefits would have been received. So if you're getting twenty thousand dollars in a retroactive payment, it would be for more than one year. So let's just say it was you got ten thousand and one year and ten thousand and the other for these two past years. They should spread the taxes out. Ten thousand one year, ten thousand the next. That often results. And you not only any tax at all. So there you have it. Now you understand about the retroactive payment and how it could apply in your situation. Keep watching our videos to learn more about CPP disability and what it takes to win benefits.