My understanding is that if I receive a monthly payment from Registered Pension Plan, I need to file tax each year. What should I do when I can't file it each year?

[hcho7136]

My understanding is that if I receive a monthly payment from Registered Pension Plan, I need to file tax each year. What should I do when I can't file it each year due to unforeseen circumstance such as decline in cognitive ability due to old age? I am single and I don't have any children, and I don't work anymore (no income other than pension). I am just curious what I should do in such cases because I don't want to get a penalty from the government for not filing taxes.

[TonyC11 · Accepted solution]

Your RPP income, along with other sources such as CPP, OAS, foreign pensions, RIF income, annuities and bank interest , are all taxable and you should file annually with CRA.

There are plenty of ways you can arrange this, if you are unable to file yourself.

- for free, through the CRA-sponsored CVITP voluntary service. If you a member of a community organization, or live in shelters housing, long term care or are hospitalized, consult with any of the se agencies to find a CVITP service provider. CRA does publish names of community groups across the country, but in my experience not all CVITP providers are shown.

- for free through a relative or friend. Most families have someone that'd ones taxes'. You may want to have this person file with CRA to act on your behalf. If you already have someone who has power of attorney, they would be a potential candidate.

- pay a tax-filing service. There are plenty of them, and all will file back-taxes for you.