EI/income taxes

[iamvolcom]

I collected EI for about 6 weeks this summer. At the end of the year I will have made about $40,000, and have bought $8500 in RRSP contributions.

I remember reading somewhere that if I end up making too much at the end of the year, I would have to pay back my EI. Does anyone have any information on this? Do my RRSP contributions help me in this situation? The reason I'm asking is obviously cause I don't want to pay it back, and that I was planning on working lots of overtime. I don't want to work all this overtime, only to give it straight to the government.

[westernartic]

If you make over $50,000 then you have to give it back.So there you should not have any issue at all.The rrsp paymenst maybe another story.Did you use any of the e money to buy any rrsp's.

[asdfvcx]

Straight from the government: http://www.hrsdc.gc.ca/en/ei/information/repayment.shtml

[iamvolcom]

I didn't use any of the EI money to buy RRSP's but I did happen to buy RRSP's while on EI.

Thanks for your help

[mirek]

I didn't use any of the EI money to buy RRSP's but I did happen to buy RRSP's while on EI.


:confused: :confused:

Technically you did.

[iamvolcom]

Yeah, I figured I'd get nailed. I just dipped into my personal savings to keep up with my Monthly RRSP payments. Being ahead never seems to pay off. I should have just just waited till I started to work again and buy a lump sum of RRSP's instead.

So I assume they are going to look at my monthly RRSP contribution receipts and compare them to my EI payments? I was laid off on the 15th of July and my RRSP payment came out of my account on the same day. I'm sure they'll ding me for that one too?

Ah well, what can yah do....

[ghostryder]

Yeah, I figured I'd get nailed. I just dipped into my personal savings to keep up with my Monthly RRSP payments. Being ahead never seems to pay off. I should have just just waited till I started to work again and buy a lump sum of RRSP's instead.

So I assume they are going to look at my monthly RRSP contribution receipts and compare them to my EI payments? I was laid off on the 15th of July and my RRSP payment came out of my account on the same day. I'm sure they'll ding me for that one too?


Who cares if you made RRSP contributions? In fact this should be to your advantage since the determination of repayment of EI is dependant on your Net income, line 236 of your return. This amount is after your RRSP deductions so your $40,000 in income will be $31,500 on line 236 (not including your EI since you didn't mention how much you got). Well under the $48,750 line where repayment starts.

Besides, at most you would have to do is

If your net income from all sources exceeds $48,750 you will be required to repay 30% of the lesser of:

your net income in excess of $48,750; or
the total regular benefits, including regular fishing benefits, paid in the taxation year.


From the EI link above.