Should I reduce CPP payable on my taxes?
April 27, 2011 4:51 PM Subscribe
Quirky Canadian tax question - what's the long term impact of reducing CPP payable?
Due to illness, my sole proprietor business income dropped dramatically this past year. I'm at the point where I've reduced all tax payable and every deduction I now put in is reducing the CPP I need to pay.
While I don't want to pay very much, I'm very concerned abotu the long term implications of reducing the CPP payable. I mean, when I am 65, is the $X I just wrote off going to mean $Y a month less in benefits for the next 30 years?
Note: I am a single mother who took considerable time off for child bearing/rearing. Just fyi, as that affects long term income and CPP contributions. Yes, I know I can apply for a portion of my former partner's CPP. And, yes, I know I could ask an accountant, but my income is so low that this would eat away at grocery money, so I am looking to AskMe first.