How do I handle a CPP/EI overpayment (I switched jobs in December and had CPP/EI deducted in excess for those two pay periods). Will CRA just include that refund?

[TurboTaxKim · Accepted solution]

When Canada Revenue Agency (CRA) receives your tax return, it automatically calculates any overpayment and refunds it to you. Using TurboTax to file your return, any overpayment will automatically be calculated and entered on lines 448 for CPP and 450 for EI of the tax return. You can see the amounts of your overpayments on these lines in the Detailed Tax Summary.

[jennconnelly]

I have overpaid CPP and EI this tax year, and even thou my T4's are imput correctly TT isn't putting that value into Line 308 and Line 363 of my Sche 1. The max contribution amounts are filled in there, so it doesn't show I have over paid. Help please!

[hplusplusplusplu1]

Sorry I can only confirm that TurboTaxKim's answer above was my solution - i did indeed see TurboTax fill in the amounts on 448 and 450 and it was the correct amount. You might double check lines 448/450 and that you indeed had an overpayment otherwise.. ¯\_(ツ)_/¯

I wasn't a big fan that TurboTax didn't mention that it resolved the overpayment at all - I would expect (given that this is a non-regular scenario) that it would have mentioned it somewhere like "Hey we noticed the overcontribution and took car of it for you - see here.."

[TurboTaxKim]

When you have a CPP or EI Overpayment, you will only see the "Maximum" amounts on the Schedule 1, (as CRA does not allow you to enter any excess). Any overpayments appear on lines 448 - CPP Overpayment (Excess Contributions) and 450 - EI Overpayment (Excess Contributions) as a credit.

These overpayments are very common, you can rest assured that TurboTax is making the entries on the correct lines of the CRA forms. 

[camfromsk]

I often get an overpayment each year because my deductions lower my tax bracket. However, this also means I am not getting the full advantage of my pension at retirement because my available CPP  contributions were on the reduced taxable income and not my income before deductions. Turbotax automatically calculates the overpayment and files it as part of a refund. I do not want the overpayment now and would prefer to have that contributed now so I have more income in retirement when I need it. How can I refuse the overpayment now to have that slightly higher income in retirement from my CPP?

[TurboTaxGinette]

The overpayment is calculated as per the Canada Revenue Agency who decide to repay it with your refund. You may wish to contact the Canada Pension Plan to see what can be done about this.

Thank you for choosing TurboTax.