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?
posted by anonymous to Work & Money (2 answers total) 1 user marked this as a favorite
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.