How do I prorate the self-employed earnings on Schedule 8 for someone who opted to stop contributing to CPP midway through 2014? They turned 65 & CPP started in June.

They should only be contributing based on the first half of the year's earnings. Do I have to override?

Answer

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Hello,

In order to stop contributing to CPP when someone turns 65 during the year and received CPP benefits, please follow these steps.

1. In S8, enter the month in which you elect to stop contributing to CPP in box 372 of Part 1. 

2. Override the prorated amount in line 1 of Part 4 if you have self employment and other income (NO Employment Income). If you have self employment income and employment income, then override line 1 of Part 5. Here is the formula to calculate the prorated amount:

Net self employment income /12 * number in box A

Hope this information will help you.

Cheers

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