246 – Deduction for a repayment of amounts overpaid to you
You can deduct amounts you were required to repay in 2021 because you received an overpayment, provided they were included in your income for 2021 or a previous year. These amounts may pertain to income such as:
- the Old Age Security pension, other than repayments covered on line 250, point 3;
- social assistance payments and any similar government financial assistance (such as financial assistance received under the Youth Alternative Program or the Aim for Employment Program). The amount of the repayment is shown in box H of your RL-5 slip;
- financial assistance paid by the Ministère du Travail, de l'Emploi et de la Solidarité sociale;
- net federal supplements (also enter this repayment on line 276 of your return), other than repayments covered on line 250, point 3;
- labour adjustment benefits;
- research grants;
- scholarships, bursaries or any similar financial assistance (also enter this repayment on line 276 of your return, but only if you claimed a deduction on line 295 in a previous year for the scholarship or bursary in question);
- the Canada Education Savings Grant (CESG);
- income assistance payments;
- retiring allowances;
- Employment Insurance benefits (the amount repaid is shown on the T4E slip), other than repayments covered on line 250, point 3;
- Québec Pension Plan (QPP) or Canada Pension Plan (CPP) benefits;
- income replacement indemnities (if you received an RL-5 slip, the amount of the repayment is shown in box P). Also enter this amount on line 276;
- Québec parental insurance plan (QPIP) benefits (the amount of the repayment is shown in box D of your RL-6 slip);
- the Apprenticeship Incentive Grant;
- Wage Earner Protection Program (WEPP) payments;
- benefits paid to the parents of a crime victim;
- amounts received from a registered pension plan (RPP) or a pooled registered pension plan (PRPP), including a voluntary retirement savings plan (VRSP), or interest on these amounts, provided that the amounts received are the result of an error and they do not entitle you, in 2021, to a deduction for RPP or PRPP/VRSP contributions;
- benefits under the Incentive Program to Retain Essential Workers (IPREW);
- the Canada Emergency Response Benefit (CERB) or Canada Emergency Student Benefit (CESB);
- the Canada Recovery Benefit (CRB), Canada Recovery Sickness Benefit (CRSB) or Canada Recovery Caregiving Benefit (CRCB) received in 2020.
For the IPREW, CERB, CESB, CRB, CRSB and CRCB, you can choose to claim the deduction for 2021 (the year you are required to repay the overpayment) or for 2020 (the year you received the benefits). You can also split the deduction between the two years, so long as the total deduction does not exceed the repayment. To claim the deduction for 2020, complete a Request for an Adjustment to an Income Tax Return (form TP-1.R-V) or use our online service for making changes to a previous return.
You can deduct social assistance payments that you had to repay in 2021 if you, or your spouse at the time the payments were received, included them in your income for 2021 or a previous year. The amount of the repayment is shown in box H of your RL-5 slip.
If, in 2021, you repaid amounts that you received in a previous year under the Québec Pension Plan (QPP), the Canada Pension Plan (CPP), the Québec parental insurance plan (QPIP), the Unemployment Insurance Act or the Employment Insurance Act, see point 8 in the instructions for line 462.
If you repaid a salary, wages or wage loss replacement benefits in 2021, see point 12 in the instructions for line 207.
If, after receiving a retroactive payment of an income replacement indemnity, you repaid an amount included in the calculation of your income for a previous year and the result is a non-capital loss, you can carry the loss back three years or carry it forward twenty years to reduce your taxable income. To carry your loss back to previous years, complete form TP-1012.A-V, Carry-Back of a Loss, and file it separately from your return.
You can carry the loss back more than three years if you use it to reduce your taxable income for the year for which the amount repaid was included in the calculation of your income. However, you cannot carry the loss back to a year before 2004.