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Staying in Touch – Newsletter № 9 February 2010
A newsletter for people receiving a Canada Pension Plan Disability benefit
Welcome to your annual Canada Pension Plan Disability (CPPD) newsletter, Staying in Touch.
In this Issue
- Do you know what other benefits and services you and your family may be entitled to receive?
- Planning to return to work? Find out what supports are available.
- Thinking of returning to school or volunteering?
- Concerned about financial security for a disabled family member? Read about the Registered Disability Savings Plan.
Alternate Format
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Benefits and services for you and your family
The Government of Canada offers benefits and provisions for which you or your family could be eligible.
Housing
Through Canada Mortgage and Housing Corporation (CMHC)’s Residential Rehabilitation Assistance Program, you may be eligible to receive financial assistance for modifications to your home or property that make it more accessible to people with disabilities. For more information on this program, visit cmhc.gc.ca or call CMHC at 1-800-668-2642.
NEW— First-Time Home Buyers’ Tax Credit is available to people with disabilities even when that person is not a first-time home buyer. Visit cra.gc.ca/hbtc or call the Canada Revenue Agency at 1-800-959-8281.
CPPD Children’s Benefit
While you are receiving the CPPD benefit, your dependent child under 18 (or your child who is between 18 and 25 and who is attending school full-time) is eligible for a benefit of $214.85 (for 2010) per month. These benefits are not automatic—when a new child enters your care and custody through birth, adoption, marriage, or a common-law relationship, you or your children must apply.
Child Rearing Provision
If you had low or no income during the time you were raising children who were under the age of seven and born after December 31, 1958, the Child Rearing Provision could help you qualify for a CPPD benefit or have your monthly benefit amount increased.
For more information on the CPPD Children’s Benefit or the Child Rearing Provision, please visit servicecanada.gc.ca or call 1-800-277-9914.
Compassionate Care Benefit
When someone must take time off work to care for a gravely ill family member who is at risk of dying, he or she may be eligible for the Employment Insurance Compassionate Care Benefit. Compassionate Care benefits may be paid up to a maximum of six weeks.
For more information on the Compassionate Care Benefit, please visit servicecanada.gc.ca or call 1-800-206-7218.
Participating in paid employment
CPPD beneficiaries tell us that they want to work to the extent that they are able. To learn more about how CPPD can support your return to work, call 1-800-277-9914 and ask to speak to a vocational rehabilitation case manager.
Did you know?
- Last year, over 5,000 CPPD clients told us they were working for pay.
- Almost half continued to work regularly, enabling them to eventually leave the CPPD benefit; the rest continued to receive their benefits.
When do I have to let CPPD know I am working and earning?
You may earn up to $4,700 in 2010 before you need to contact us (gross income before taxes whether you were employed or self-employed). This is not a point at which your benefits are stopped; rather, it is an opportunity for us to offer support to help you continue working if you are able.
For some people, this might be the first step back to regular employment. For others, the ability to work occasionally provides extra income while they continue to receive CPPD benefits.
Once you begin to work regularly, you can participate in a work trial for up to three months while continuing to receive CPPD benefits. This allows you time to build stamina and test whether you can work on a regular basis.
Automatic Reinstatement: A financial safety net if you return to regular work
You can have your CPPD benefits automatically restarted if you go back to work but find you cannot continue working because of your disability. This provision is especially useful for those with episodic conditions such as mental illness, multiple sclerosis, or cancer who want to work as often and as long as they can.
With Automatic Reinstatement, you do not have to reapply: you and your doctor each need to complete a simple one-page form to restart your benefits.
About 1,500 clients have had their benefits reinstated since the launch of Automatic Reinstatement five years ago. There is no limit to the number of times you can use Automatic Reinstatement. Your children’s benefits will also be restarted automatically if they remain eligible.
Saving on your taxes
Remember, CPP benefits, including CPPD are taxable. Here is important information about tax credits and benefits that can help you save on your taxes.
Keep more of your earnings
The Working Income Tax Benefit (WITB) is a refundable tax credit that allows low-income individuals and families to keep more of their work-related earnings. A disability supplement is available for individuals who qualify for the Disability Tax Credit and meet the eligibility criteria for the WITB. Canada’s Economic Action Plan is expected to double the total tax relief beginning in the 2009 tax year.
CPPD recipients who have employment earnings may qualify. For more information on the Working Income Tax Benefit and disability supplement, visit cra.gc.ca or call the Canada Revenue Agency at 1-800-959-8281 (TTY users call 1-800-665-0354).
Disability Tax Credit
Many CPPD recipients may also be eligible for the Disability Tax Credit which reduces the amount of income tax that a person pays.
Even if you are not taking advantage of reduced income tax, you may want to apply for the Disability Tax Credit. Qualifying for the Disability Tax Credit is part of eligibility requirements for some other programs and benefits.
For more information on the Disability Tax Credit and other tax deductions and credits that you may be able to claim visit cra.gc.ca/disability or call the Canada Revenue Agency at 1‑800‑959‑2221.
Arrange for monthly income tax deductions
It’s important to remember that if you receive CPP benefits, you might owe taxes when you file your next income tax return. If you live in Canada, you can have income deducted from your monthly CPP payment, rather than paying a lump sum at the end of the year. This is not automatic; you must ask Service Canada by calling 1-800-277-9914.
Are you raising children?
The Canada Child Tax Benefit (CCTB) is a tax-free benefit paid monthly to help eligible families with the cost of raising children under 18 years of age. Canada’s Economic Action Plan increased the income level at which the reduction of the CCTB begins. This increase—along with increases to the National Child Benefit supplement—will result in additional amounts of up to $436 per year for a low-income family with two children, and up to $76 per year for a middle-income family with two children.
To learn more about the Canada Child Tax Benefit and National Child Benefit, visit cra.gc.ca/benefits or contact the Canada Revenue Agency at 1-800-387-1193.
Participating in the community
Not ready to rejoin the work force? You can volunteer, attend school, participate in training, or upgrade your skills without affecting your CPPD benefits.
NEW — Returning to school
On August 1, 2009, new federal student financial assistance measures were put in place. These include better support for students with permanent disabilities, such as new Canada Student Grants of $2,000 per loan year, and loan repayment assistance that offers flexibility in how and when students with permanent disabilities repay their loans.
Visit canlearn.ca or call the National Student Loans Service Centre at 1-888-815-4514 for more information on federal student financial assistance programs for you and your family.
Make a difference—Volunteer
Volunteering is a great way to make a difference in your community and in your own life. Celebrate National Volunteer Week April 18 to 24, 2010, and discover how you can give back to your community by visiting volunteer.ca.
Planning for your future
The Registered Disability Savings Plan (RDSP) Grant and Bond
The RDSP can help people with disabilities and their families save for the future. Canadian residents under age 60 who are eligible for the Disability Tax Credit (Disability Amount) are eligible to open an RDSP.
Through the Canada Disability Savings Grant, the Government of Canada will match your RDSP investments, up to a maximum of $3,500 each year, with a lifetime limit of $70,000.
For low-income and modest-income Canadians, the Government of Canada deposits money into RDSPs through the Canada Disability Savings Bond. Those who qualify could receive up to $1,000 a year, with a lifetime limit of $20,000. You do not need to contribute to the RDSP to receive the bond.
For example:
Greg opened an RDSP for himself in May 2009. He is 44 years old, with an annual family income of $19,000. Although he did not make contributions to his RDSP, his friend contributed $500 in October 2009. For this contribution, Greg received a matching grant of $1,500. Also, as Greg’s income was below $21,816, he received a $1000 bond. At the end of 2009, Greg will have received $2,500 in grant and bond from the government.
For more information about the RDSP, grant and bond, visit disabilitysavings.gc.ca or call 1 800 O-Canada (1-800-622-6232).
What happens to my CPPD benefit when I turn 65?
Once you turn 65, your CPPD benefit will automatically change to a CPP retirement pension. You will not need to apply.
Your CPP retirement pension will likely be less than your disability benefit. However, you can also apply for the Old Age Security (OAS) pension and, depending on your income, the Guaranteed Income Supplement. Your spouse may also be eligible for the Allowance benefit. You will receive an application form for OAS at least six months before you turn 65.
Staying in touch with CPPD
Let Service Canada know if:
- you return to work and earn more than $4,700 or your return to work was unsuccessful;
- your medical condition has improved;
- a child enters or leaves your legal care and custody;
- you complete an academic or training program; or
- your address, telephone number, or direct deposit information changes.
By reporting these changes, you will avoid any disruptions to your CPP payments and receive all benefits to which you are eligible. You will also avoid having to repay any amount you were not eligible to receive.
Even though you may have declared your earnings to another organization such as the Canada Revenue Agency or a social assistance office, you must contact us directly to report earnings over $4,700.
Speed up transactions online!
You can view and print your CPP and OAS tax slips, change your address and direct deposit information, view your most recent payment amounts, and view your CPP Statement of Contributions online.
To use these online services, visit servicecanada.gc.ca and click “Access My Service Canada Account.”
Note: People residing outside Canada can only view and print their address and payment destination.
Program |
Who to contact |
|---|---|
Canada Pension Plan and Old Age Security benefits, including CPPD |
Service Canada Click: servicecanada.gc.ca Call: Visit: a Service Canada Centre Mail: P.O. Box 8522, Ottawa, ON, K1G 3H9 |
Compassionate Care Benefit |
Service Canada Click: servicecanada.gc.ca Call: |
Disability Tax Credit |
Canada Revenue Agency Click: cra.gc.ca Call: 1-800-959-2221 |
Working Income Tax Benefit First-Time Home Buyers’ Tax Credit Registered Disability Savings Plan (RDSP) |
Canada Revenue Agency Click: cra.gc.ca Call: |
RDSP grant and bond |
Human Resources and Skills Development Canada Call: 1 800 O-Canada |
Canada Child Tax Benefit National Child Benefit |
Canada Revenue Agency Click: cra.gc.ca Call: |
Residential Rehabilitation Assistance Program |
Canada Mortgage and Housing Corporation Click: cmhc.gc.ca Call: 1-800-668-2642 |