H&R Block’s tax software automatically calculates your CPP/QPP amounts for self-employment, business, or professional income. However, Schedule 8 can be used to increase your CPP or QPP contributions based on your employment income. This might be a good idea if:
- You want to include certain types of income not shown on your T4 (e.g. tips) or
- You work two jobs (or more) and the amount of CPP/QPP that was withheld was too low
Can I choose not to contribute to CPP?
Yes. If you’re a working beneficiary, and if you earned employment income, self-employment income, or both, you can choose to stop contributing to the CPP. You’ll need to complete Schedule 8 and meet these additional requirements:
- You’re between 65 and 70 years of age
- You’re receiving a CPP retirement benefit
- You earned employment or self-employment income in a province or territory other than Québec
- You’ve completed form CPT30: Election to stop contributing to the Canada Pension Plan or revocation of a prior election
- You’ve submitted a copy of your completed form CPT30 to your employer and to the Canada Revenue Agency (CRA)
Note: Your decision to stop contributing to the CPP will remain in place until you turn 70 or until you complete another CPT30 form, this time indicating that you’d like to resume making contributions.
Can I choose not to contribute to QPP?
No. All residents of Québec must contribute to the QPP.
When will my decision to stop contributing to the CPP take effect?
According to the CRA, your election to stop CPP contributions will take effect on the first day of the month, following the date you gave a completed copy of form CPT30 to your employer.
For example, if you give form CPT30 to your employer on June 22, 2016, your CPP contributions will stop July 1, 2016.
If you’re not a resident of Québec: your CPP contributions will stop on the first day of the month after you submit form CPT30 on both your employment income and self-employment income, earned outside of Québec.
If you are a resident of Québec: your CPP contributions will stop on the first day of the month after you submit form CPT30 on your employment income earned outside of Québec only (not on your employment income earned inside Québec).
Where do I claim this?
Follow these steps in H&R Block’s tax software to file your 2016 taxes:
Important: Before you begin, you must ensure that you told that you are between 65 and 70 years of age. To do this:
- Under the PREPARE tab, click the OTHER icon. You will find yourself here:
- Under the SPECIAL SITUATIONS heading, click the checkbox labelled Contributions to the CPP or QPP (Schedule 8).
- When you arrive at the Contributions to the CPP or QPP page, enter your information into the tax software.
Where can I learn more?
- Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election (CRA website)
- Schedule 8: Canada Pension Plan Contributions and Overpayment (CRA website)