Both disability benefits and retirement benefits affect the CPP contribution calculation whereas only disability benefits affect the QPP contribution.
Disability Benefit
Disability benefits received from CPP/QPP qualify as earned income for both RRSP/PRPP and child care purposes.
Retroactive payments of CPP/QPP disability benefits can be the object of an election by virtue of which the amounts for prior years are included in prior-year income. For Québec purposes, to request Revenu Québec to determine if it is to the taxpayer's advantage to average taxation of this income, complete Form TP-766.2, Averaging of a Retroactive Payment, Support-Payment Arrears or Repayment of Support.
Child Benefit
A CPP or QPP benefit paid to an orphan or to the child of a disabled person must be included in the child's income.
Death Benefit
The death benefit must be included in the income of the estate, not in the income of the deceased. In this case, it must be indicated in the Trust Income Tax Return (TP-646).
See Also