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DaveO
New Member

Does TurboTax 2018 not consider Employment Insurance (EI - Line 119) as Earned Income on form T778?

It appears as though TurboTax 2018 Online does not consider Employment Insurance (EI - Line 119) as Earned Income on form T778. After completing and downloading my file, I noticed that it had populated the Earned Income line (line 6 - Form T778) only with information from my 2018 T4, and not my 2018 T4E (employment insurance). I spoke with two senior CRA agents today who confirmed that EI (Line 119) should be included as Earned Income on this form. 

Is there something else that could have caused this (user error) or is a TurboTax error? 

As a result, the information transferred to Line 214 is incorrect as it isn't being based off of the correct information on Form T778.

 Please help.

To preemptively prevent the copy and paste answer I've seen related to these issues, NO the balance owing is not zero; NO my income clearly was not zero; YES it was assigned to the spouse with the lower income; YES the dependant's information and the relationship status was entered correctly.

1 Reply

Does TurboTax 2018 not consider Employment Insurance (EI - Line 119) as Earned Income on form T778?

This is not a glitch in TurboTax and the information you received from CRA was correct, but they neglected to state that only certain types of EI Benefits qualify as "earned income" for the Childcare Expense calculation. 

Regular benefits from Box 15 of the T4E do not qualify, whereas amounts in Box 17 of the T4E - Employment Benefits & Support Measures do.

I've attached a screenshot of the CRA Income Tax Folio information, as well as a link to that particular IT Folio.

https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-fol...