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posted Apr 12, 2023 2:41:07 PM

Self-employed CPP premiums

Filling out tax return on Turbotax. Self-employed income (approx. $4500) entered as business income, and TurboTax shows amount owing for CPP premiums. However, there is no deduction for the yearly $3500 exemption. It appears that it is deducting a different amount, or none at all, as it shows almost $400 owing (before deduction for tax already paid). Any advice?

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1 Replies
Level 3
Apr 17, 2023 8:41:13 AM

The basic exemption amount is used in calculating your maximum CPP contributions for the year. TurboTax will automatically make these calculations for you. If you would like to see how this calculation is done, please refer to this CRA webpage: 

Checking the amount of CPP you deducted

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As per the Canada Revenue Agency (CRA), the year’s basic exemption for 2022 is $3,500, and the year’s maximum pensionable earnings are $64,900 for 2022. The $3,500 amount is based on an annual pay period.

 

As long as you don't exceed your maximum CPP contributions for the year, the correct amount has been deducted. If you did make an overpayment, TurboTax will automatically calculate this, and the amount will either be refunded or used to reduce your balance owing.

To view these amounts, please follow these instructions for TurboTax Online:

Review (left side menu) > Bottom Line (Tax Summaries) > See detailed tax summary (under Review Summary)
 
If further help and verification is needed, we believe your best option is to contact our telephone support team as they have the option to view your screen to help you. To contact them, please follow this link: Contact Us
 
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