Electing to stop paying CPP

[rantonic]

I am over 65 but under 70, have earned self-employment income and received a CPP retirement pension. I indicated "yes" that I had previously made an election in a prior year to stop contributing (that was done in 2020).  I am now getting an message that I cannot file electronically until the error in this section is fixed. I then entered that I wanted to elect to stop paying as of Jan 1/22 (while still leaving the other box ticked), thinking that might fix the problem but am still having the same issue. How can this be resolved, as I would like to file electronically?

[Geo123]

 

The election takes effect on the first day of the month following the date you provide a copy of the completed form CPT30 to your employer. This date applies to both your employment and self-employment income earned outside Quebec.

You must indicate this choice. To do so, please follow these steps:

1 - On the "Left side menu on the Interview tab", select the "Controls".

2 - On the page that appears, go to the section "If you had employment earning''. For the line 'Did you make a CPT30 election for 2022?'', select "Yes" option in the drop-down menu.

3 - For the line "If you answered Yes to the question above, enter the effective election date (01-mm- 2022) to stop contributing to the CPP or to revoke an election made in a prior year to stop contributing to the CPP (from the CPT30 Part C)", select "Elect to stop contributing to the CPP" in the dropdown menu and in the field on the right, enter the date of your choice.

4 - Also, as a self-employed individual, you must answer the question "Do you want to stop contributing to the CPP on the self-employment income, or to revoke an election made in a prior year?" In your case, you must answer "Yes".

5 - For the line "If you answered Yes to the question above, enter the effective election date (01-mm- 2022 to stop contributing to the CPP (Schedule 8 L.372) or to revoke an election made in a prior year to stop contributing to the CPP (Schedule 8 L.374)",

select "Elect to stop contributing to the CPP" in the dropdown menu and in the field on the right, enter the date of your choice.

Schedule 8 will be generated by the program, on Part 2 the calculation of your contributions to the employment income will be made and the amount subject to the assessment will be entered on line 3, whereas in Part 3, the amount of your self-employment income will be entered on line 3 of Schedule 8.

These amounts will be subject to the CPP.

For more information on the changes to CPP rules, please visit the following links:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/changes-rules-deducting-canada-pension-plan-cpp-contributions.html

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/what-changes-cpp-contribution-rules.html

[malcolmanderson]

Hello

It sounds like you may have encountered an error with the Canada Revenue Agency (CRA) online filing system. The system may not recognize your previous election to stop contributing to CPP and is requesting that you fix the error before you can file electronically. Here are some steps you can take to resolve this issue:

1. Check the information you provided: Review the information you provided in the relevant section of your tax return to ensure that it is accurate and complete. Make sure you have indicated the correct year in which you made your previous election to stop contributing to CPP.

2. Contact the CRA: If you are still having trouble filing electronically, contact the CRA for assistance. You can call their general inquiries line at 1-800-959-8281 or visit their website for other contact options. The CRA representative may be able to help you identify and resolve the issue.

3. Consider filing a paper return: If you are unable to resolve the issue with the CRA and need to file your return before the deadline, you can consider filing a paper return. The CRA provides paper forms that you can download and fill out manually. You can then mail your completed return to the CRA. Keep in mind that paper returns may take longer to process than electronic returns.

4. Seek professional help: If you are still having trouble filing your return, consider seeking help from a tax professional or accountant. They can assist you with completing your return and resolving any issues you encounter.

Remember, the deadline for filing your tax return is April 30th of each year. If you are unable to file electronically, make sure to file your return by mail or seek professional assistance to avoid missing the deadline and potentially incurring penalties.