As per CRA, EI payments are taxable income. Benefits and Income Tax Like Employment Insurance (EI), Provincial Parental Insurance Plan benefits are considered taxable income and will be withheld at the source.

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Good day,

As per the reference provided by "Moussi2", special benefits, such as Maternity and Parental, are not subject to taxation (See "Exemption" section of Ref - https://www.canada.ca/en/employment-social-development/programs/ei/ei-list/reports/repayment.html).

Is any one else having difficulty with Turbotax, in that the software is identifying "special benefits", such as Maternity and Parental, as having to be repayed. It would appear that it is a glitch in the Turbotax software. Can anyone recommend a better tax program than Turbotax that does not exhibit this error.

Best regards.

To provide additional context for my question, my situation is the same as that in "Example 4" provided by the CRA link (Ref - https://www.canada.ca/en/employment-social-development/programs/ei/ei-list/reports/repayment.html).

Example 4 (Copied from CRA):

Tax years 2014 to 2023 Tax year 2024
EI claim
45 weeks of regular benefits paid in 2019 EI claim
20 weeks maternity, parental, sickness, or compassionate care benefits paid

You received EI maternity, parental, sickness, compassionate care or family caregiver benefits in tax year 2024. Regular benefits were paid in 2019. Although your net income exceeds $79,000 in 2024, you are exempt from benefit repayment for tax year 2024 as maternity, parental, sickness, compassionate care and family caregiver benefits are exempt from the benefit repayment provisions.

Question:

Why is Turbotax calculating that I have to repay the Parental benefits, when the CRA's example indicates that this must not be repaid. I am misunderstanding something? Is the Turbotax software calculating the return incorrectly?

Thank you.

The error says:  "The total amount reported for employment insurance maternity & parental benefits cannot exceed the total in box 14 on yourT4E slips.

I confirmed correct amounts.

It will not let me file until error is fixed...

The error says:  "The total amount reported for employment insurance maternity & parental benefits cannot exceed the total in box 14 on yourT4E slips.

I confirmed correct amounts.

It will not let me file until error is fixed...

Try removing the amount you have entered, and re-enter them as shown on your T4E slip. If this does not work contact our phone support team so that they can view your screen to see what they issue might be. 

Thank you for choosing TurboTax.