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Personal Tax    ->  Business   ->   Canada Pension Plan (CPP), Quebec Pension Plan (QPP) and Employment Insurance (EI)  - > EI Benefit Repayment/Clawback

EI Benefit Repayment (EI Clawback)

Employment Insurance Act S. 144 in Part VII

Some or all of your EI regular benefits may have to be repaid.  The calculation of the amount to be repaid is done when your income tax return is filed, using the Social Benefits Repayment Form.  You may have to repay some of the EI benefits you received if the total of

bullet your net income before adjustments (line 23400 of your tax return)
bullet less any Universal Child Care Benefit (line 11700)
bullet plus any Universal Child Care Benefit repayment (line 21300)
bullet less any Registered Disability Savings Plan (RDSP) income (line 12500)

exceeds $75,375 in 2022, or $70,375 in 2021 (1.25 times the maximum insurable earnings for the year)

The amount of the repayment is 30% of the lesser of

bullet total benefits, other than special benefits, paid to the claimant in the tax year, or
bullet the amount by which the claimant's income for the tax year exceeds 1.25 times the maximum yearly insurable earnings.

Exceptions/Exclusions

There will be no clawback of EI benefits when

bullet a claimant was paid regular EI benefits for less than one week in the ten years prior to the taxation year of the current benefits, or
bullet the EI benefits received are "special benefits", such as
bullet pregnancy, maternity, or parental benefits
bullet benefits due to a prescribed illness, injury or quarantine
bullet compassionate care benefits

EI benefits are reported to the recipient on a T4E - Statement of Employment Insurance and Other Benefits.  If the regular benefits from box 15 are subject to repayment, box 7 will say 30%.  The T4E form includes a repayment chart for calculation of the amount to be repaid.

If you receive regular benefits that overlap 2 calendar years, you may qualify for the exemption in the first calendar year.  However, you will not qualify in the 2nd calendar year, as there would be more than 1 week of regular benefits paid in the preceding 10 calendar years.  See the Service Canada information on Employment Insurance (EI) and Repayment of Benefits at Income Tax Time.

Canadian Tax Calculator Input of EI Benefits

The Canadian Tax Calculator will calculate clawback of EI benefits.  If your benefits are not subject to clawback, enter the amount as other income instead of as EI benefits.  If box 7 says 30% and you have amounts in box 15 and in other boxes (box 14 will be greater than box 15), enter the box 15 amount in the calculator as EI regular benefits, and enter the other portion of the benefits as other income.

TaxTips.ca Articles

Video Tax News June 2020 Life in the Tax Lane

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Canada Revenue Agency (CRA) Resources

Employment Insurance (EI) and Repayment of Benefits at Income Tax Time

T4E - Statement of Employment Insurance and Other Benefits

Employment Insurance - Supplemental Unemployment Benefit Program

Supplemental Unemployment Benefit Program

Revised: September 15, 2021

 

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