BLSM Posted January 18, 2021 Report Share Posted January 18, 2021 The CRA says - If you are self-employed, you must complete the applicable section of the CRA's Schedule 8 CPP contributions on Self-Employment and Other Earnings and file it with your Income Tax and Benefit Return. What I need to know, is where and how do I actually show this in my tax return? Because we are self-employed, the S8 is automatically included, but I can't find anywhere to tell the system I want to quit paying! Do I just add it manually into the S8 that the system prints out? That won't work, because then UFile won't adjust the amounts I need to pay for 2020. And, since my b'day was in December, it probably doesn't matter for this year, but how will I KNOW that CRA has the info needed? Has anyone done this? Any suggestions? Thanks! Quote Link to comment Share on other sites More sharing options...
BLSM Posted January 18, 2021 Author Report Share Posted January 18, 2021 sorry, posted in the wrong spot, as it's my first time in the forum - Mod, please move if possible - thanks! Quote Link to comment Share on other sites More sharing options...
BLSM Posted January 19, 2021 Author Report Share Posted January 19, 2021 Thank you so much, Nawal, for the speedy response! I've got it fixed up now. Brenda Quote Link to comment Share on other sites More sharing options...
BLSM Posted January 27, 2021 Author Report Share Posted January 27, 2021 Hello again I am working on my taxes again, and I am getting a warning - It tells me I have entered a date to stop contributing to CPP, but I do not qualify. The date I entered is not considered by UFile. I entered Dec. 1, 2020 in the ONLY self-employment income section. We both turned 65 in December, and the CRA says we cannot enter a date BEFORE the month we turn 65. Our only income is from CPP, Self-employment, rental property, and CERB (entered under other income). Is the CERB prompting this error, as it's not under the self-employment section? We had no actual T4 employment income at all in 2020. thanks Brenda Quote Link to comment Share on other sites More sharing options...
BLSM Posted January 27, 2021 Author Report Share Posted January 27, 2021 Thank you. I have sent an email. Quote Link to comment Share on other sites More sharing options...
BLSM Posted February 5, 2021 Author Report Share Posted February 5, 2021 Hello, again I sent an email to support 8 business days ago. Do you have any idea how long I might expect to wait for a response? Quote Link to comment Share on other sites More sharing options...
TheTaxSmith Posted February 6, 2021 Report Share Posted February 6, 2021 Hi BLSM. It appears you turned 65 in December 2020. CPP starts the month after you turn 65, so that would place the start date as January 2021. You can not elect to opt out of CPP payments until year 2021. Quote Link to comment Share on other sites More sharing options...
BLSM Posted February 6, 2021 Author Report Share Posted February 6, 2021 Thank you. I guess the wording isn't clear on the CRA site. When they say you can't choose a date before the month you turn 65, they suggest you CAN choose the month of your birthday. Do I then choose the date of Jan 2021, or will that be allowed? Do I have to wait until next year's taxes to fill that part in? Thank you. Quote Link to comment Share on other sites More sharing options...
TheTaxSmith Posted February 6, 2021 Report Share Posted February 6, 2021 Hi BLSM. You have to wait till next year. The reason is that the self-employment/work income requires a CPP contribution up until the month after you turn 65. If you were in Quebec you could not opt out like the rest of Canada. So in the rest of Canada self-employed people should opt out after they turn 65. But if you were an employee and still working it might be better to not opt out as your employer will be required to contribute 50% of the total towards your CPP. Quote Link to comment Share on other sites More sharing options...
BLSM Posted February 6, 2021 Author Report Share Posted February 6, 2021 Thank you for that additional info, TTS. I appreciate your time Brenda Quote Link to comment Share on other sites More sharing options...
TheTaxSmith Posted February 6, 2021 Report Share Posted February 6, 2021 Hi Brenda, I may have been too quick to reply thinking you still had employment as well as self-employment income. It appears that for all of 2020 you had only self-employment income that would require CPP contributions. You should in this case be able to opt out for the month of December. In Box 50372 on Schedule 8 you will need to enter "12" for the month. That should prorate your CPP contributions on the self-employed income effectively requiring you to pay CPP on 11 of the 12 months income. Look again at Nawal's post above. From a previous post by Nawal “3- On the section, "If you had self-employment income (see help?)", go to question "Did you want to stop contributing to the CPP on self-employment income?".” “4- For the question, "If you answered Yes to the question above, enter the election date (01-mm- 2020 ) to stop contributing to the CPP (Schedule 8 L.50372) or to revoke an election made in a prior year to stop contributing to the CPP (Schedule 8 L.50374) ", click on the drop down menu and select "Elect to stop contributing to the CPP"and in the box to your right enter the date "(dd-mm-yyyy).” Also as per CRA From CRA Schedule 8 “If you had only self-employment income for 2020 and elect in 2020 to stop paying CPP contributions on your self-employment earnings, enter the month in 2020 for which you choose to start this election in box 50372 on the next page. The date cannot be earlier than the month you turn 65 and you are receiving a CPP or QPP retirement pension. For example, if you turn 65 in June, you can choose any month from June to December. If you choose the month of June, enter 06 in box 50372 because June is the sixth month of the year.” In your case you would select December and as mentioned you would enter "12" in box 50372 Quote Link to comment Share on other sites More sharing options...
BLSM Posted February 6, 2021 Author Report Share Posted February 6, 2021 That is what I did previously, and I got the warning message saying UFile was disregarding the date. See my post of Jan. 26. Anyway, I just now went back into the program, Controls. That message about not considering the date was no longer there, and a new message said I had to answer Yes or No to the 'employment' part about filing that form CPT30. Although we had no employment income, I answered NO to that question, and the message went away. I'll be back if something is different NEXT time I sign in! Thanks for your help. Brenda Quote Link to comment Share on other sites More sharing options...
Michael K Posted February 13, 2021 Report Share Posted February 13, 2021 I am 66, have self employment income and do not wish to contribute to CPP. I went to controls and answered Yes/Stop Contributing to CPP/Jan 1, 20 under CPP/Self Employment income. But when I redo the tax calculation, the CPP payment is still there and schedule 8 , part 2 shows CPP applying for 12 months. This does not change regardless of what I enter in the controls section. Suggestions? Mike Quote Link to comment Share on other sites More sharing options...
BLSM Posted February 13, 2021 Author Report Share Posted February 13, 2021 Mike, see my post above yours. I had the same problem, only with December. I added in "NO" in the employment income part, where it asks if you've filed an election before. Now, my S8 shows 11 months eligible and starting to stop payments in 12 (Dec.) Quote Link to comment Share on other sites More sharing options...
DBF Posted January 27, 2022 Report Share Posted January 27, 2022 I noticed all these threads are regarding self employed income. What if you have a corporation and are paying yourself a salary? Is there a way to avoid paying into CPP at age 65? I would already be at my maximum CPP and adding more will not increase my payout. Also, I would like to defer my CPP to 70. If this cannot be done would paying myself dividends be the best solution? Quote Link to comment Share on other sites More sharing options...
TheTaxSmith Posted January 27, 2022 Report Share Posted January 27, 2022 Hello DBF, Take a look at this https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/cpp/you-stop-contributing-cpp.html Once you reach the max CPP threshold as an employee (through your corporation), or self-employed, you won't pay anymore into the CPP plan. You can opt out at 65 as per the link above (unless you are in Quebec). You should not apply for CPP if you want to defer your CPP benefits (receipts) until 70. Paying dividends will not attract any CPP required payments. That said however you will not also earn any RRSP eligibility. You need to carefully analyze the use of a corporation to pay salary and opt out of CPP from any after tax situation versus the future benefit at 65. You also need to review the RRSP eligibility for salary versus dividends and the total corporate and personal taxes. Not an easy process and it depends on your overall retirement goals. Trust that helps. Quote Link to comment Share on other sites More sharing options...
BRU Posted February 12, 2023 Report Share Posted February 12, 2023 Hello all, I am trying to deal with stopping CPP contributions on self employed income after 65. I have followed the prompts in the "Controls" section. I answered yes to "Do you want to stop ..." I selected the "Elect to stop" in the drop down menu and put in the date the day after my birthday I answered "No" to the prior election question Then I hit "Next" at the bottom. When I look at Schedule 8 of the return there is no date and no reduction in the overall calculation. Anyone have any ideas on what I do next? Quote Link to comment Share on other sites More sharing options...
BLSM Posted February 12, 2023 Author Report Share Posted February 12, 2023 BRU, I think I found that you had to use the month after your birthday. Quote Link to comment Share on other sites More sharing options...
BRU Posted February 12, 2023 Report Share Posted February 12, 2023 HI BLSM, I tried that. No luck. Quote Link to comment Share on other sites More sharing options...
BLSM Posted February 12, 2023 Author Report Share Posted February 12, 2023 Did you answer no to the question in the employment income section? Even though you have none (only self-emp), I had to answer that question as well. Brenda Quote Link to comment Share on other sites More sharing options...
BRU Posted February 12, 2023 Report Share Posted February 12, 2023 Hi Brenda - yes I did answer no ... no impact. Quote Link to comment Share on other sites More sharing options...
BLSM Posted February 12, 2023 Author Report Share Posted February 12, 2023 I'll look at it some more this aft. I know I had a devil of a time sorting it out. Quote Link to comment Share on other sites More sharing options...
BRU Posted February 12, 2023 Report Share Posted February 12, 2023 Hi BLSM - thx so much ... I have played with all the boxes and just can't seem to figure it out Quote Link to comment Share on other sites More sharing options...
BLSM Posted February 12, 2023 Author Report Share Posted February 12, 2023 Hi BRU I turned 65 in Dec. 2020, so went back to look at my 2020 return. In the Controls section, this is what I have: Employment earnings - election in 2020 - NO (I had no employment earnings, but it seems to need that) Self-employment - want to stop - Yes - election to stop (from choice menu), then beside it, put the date. I used 01-12-2020, even though I wasn't 65 until the 7th. - prior election - No Then in the T4a slip, I entered the amount in Box 14, and for the number of months retired, I put 12. When I look at my tax return, on the Schedule 8, for number of months CPP applies, it shows 11. I guess that's because I entered the Dec. 1 date as when I wanted to stop contributing. Brenda Quote Link to comment Share on other sites More sharing options...
BRU Posted February 13, 2023 Report Share Posted February 13, 2023 Hi Brenda - thx for your comment. All of the entries in the control section you have indicated I made (and are what I did previously). The only thing I don't get is the comment on the T4a slip. Being self employed and continuing to be I have no t4a for benefits. Quote Link to comment Share on other sites More sharing options...
BLSM Posted February 13, 2023 Author Report Share Posted February 13, 2023 I'm talking about the CPP slip. Sorry, I'm not sure what it's called officially. Quote Link to comment Share on other sites More sharing options...
BRU Posted February 13, 2023 Report Share Posted February 13, 2023 Got it ... since I am still working (post 65) I have deferred CPP and OAS - so I don't have either of those slips. Frankly I am stuck. I guess I will have to call support. Quote Link to comment Share on other sites More sharing options...
Geo123 Posted February 13, 2023 Report Share Posted February 13, 2023 Hello BRU, Please contact UFile Support so we may review the file confidentially. Please indicate that : Employment earnings - election in 2020 - NO (I had no employment earnings, but it seems to need that) Self-employment - want to stop - Yes - election to stop (from choice menu), then beside it, put the date. I used 01-12-2020, even though I wasn't 65 until the 7th. - prior election - No For telephone support, please call: 514-733-8414 or 1-888-633-8414 An agent can review the issue with you. If you prefer, you can also open a request ticket and submit an anonymous file for review on-line at https://www.ufile.ca/contact/contact-us Quote Link to comment Share on other sites More sharing options...
BLSM Posted February 13, 2023 Author Report Share Posted February 13, 2023 BRU, you don't need to call anyone. You have to be in receipt of CPP in order to stop contributing while still working. From Schedule 8 - Self-employment income only - If you had only self-employment income for 2022 and are electing in 2022 to stop paying CPP contributions on your self-employment earnings, enter the month in 2022 you are choosing to start this election on line 50372 on the next page. The date cannot be earlier than the month you turn 65 years of age and are receiving a CPP or QPP retirement pension. For example, if you turn 65 in June, you can choose any month from June to December. If you choose the month of June, enter "06" on line 50372. Brenda Quote Link to comment Share on other sites More sharing options...
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