Sunday, May 23, 2010

Income Section - CPP Disability Benefit

This is what the Spousal Support Calculator says...

CPP Disability benefit


Input the party's total annual Canada Pension Plan (CPP) disability benefits (T1, Line 152; T4A(P) slip, Box 16). This amount should also be included in "CPP Retirement benefit".

According to the CSG, annual income is determined using Line 150 ("Total income") of the T1 General form, adjusted in accordance with Schedule III and ss. 17, 18 and 19 of the CSG. This is commonly referred to as "Guidelines Income".

Note that the SSAG use the same definition of annual income as under the CSG, with some exceptions.

See the help under "Employment Income" regarding Guidelines Income caps under the CSG and ceilings, floors, and floor exceptions under the SSAG.

TIP: There is a built-in conversion feature. See the help under "Employment Income".

My Rebuttal:

This is one of those moments which makes me wonder if Family Lawyers are truly mentally retarded.

This amount is already INCLUDED in Box 20 as detailed in my previous post so it is obviously EXCLUDED from the spousal support calculation.

If you notice on a T1, Box 152 isn't even included when calculating total income.

I decided to test it to make sure it isn't duplicating the disability benefit but sure enough it is. I'm sure all disabled people will appreciate knowing that this calculator will duplicate their CPP Disability payments throwing the calculation out by 100's of dollars per month.

If you are dealing with someone who is receiving a disability payment, enter it only once (either in this field or CPP Retirement Benefit field.

Will someone please hit me over the head with a hammer 10 times so I can lose 50 basis points in IQ and become a family lawyer. Thanks.

1 comment:

  1. Another issue is the disability pension from Veteran affairs. If you enter the amount in non taxable amount it auto gross up assuming your are getting a tax credit on your income tax which is not the case.

    inothetrth@yahoo.ca

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