CPP Pensionable Earnings

[terryp1]

When estimating my taxes I used year to date amounts off of my final paystub from 2024. When updating these numbers from my T4 my overall income actually went down slightly due to pay period cutoff but when I entered the CPP pensionable earnings from my T4 my amount owing almost doubled. I am unsure why entering this value changed my amount owing as it is not additional income.

[TurboTaxSusan]

Please make sure that everything is filed out on your T4 slip ex: Box 10 (province), Box 26 (pensionable earnings)…

[terryp1]

This doesn’t address the question. Why does the amount entered in Box 26 change the amount of taxes owing? It is not additional income. And from what I’ve read if left blank the software automatically calculates it based on income. 

[TurboTaxSusan]

For some people Box 26 doesn't seem to be calculating properly for some people, and so you end up incorrectly having unpaid CPP added to your amount owing. 

[terryp1]

Is the correct amount owing before or after Box 26 is filled in?

[SidPL]

It seems the 2024 version of turbo tax is not calculating the CPP pensionable earnings. Therefore it needs to be entered manually. Until it is entered turbo tax will show a refund of CPP contributions. Therefore the amount owning or refund due is incorrect unit box 26 entered.

I had the same problem as you. I entered the values from my last pay stub and thought I was getting a refund. Then I entered the values from my T4 and ended up disappointed. It took a couple hours going through the forms with different values, to figure out why.

I can think of no reason why turbo tax can't do the CPP pensionable earnings calculation, so it must be a bug!

[Jason126]

So if I am reading the posts correctly - Turbo Tax has an error in it - One MUST enter the amount from Box 26 of their T4 - if NOT the nice fat refund one see's become a BIG tax bill later when CRA reviews your filing - is this correct?

IE the program is not automatically calculating the MAX CPP like it should and needs to be entered manually into the program.

[TurboTaxBrenda]

Thank you for this information. Are you using TurboTax Online or the desktop version? 

[terryp1]

Desktop version

[cooldawggamer]

Hi, 

Further on this point, my company made a mistake and undercharged the amount of CPP deducted.  The program of course calculates the correct amount.  This causes the CRA matching to fail.  Is there a way to manually override this to put in the amount matching the T4 slip?

Thanks.