Repayment of wages

[RyGig]

I had to provide a repayment of overpaid wages to my employer from a previous tax year (2018). How do I recover the overpaid income tax from CRA? Does my 2018 taxes need to be redone somehow, or is there a way to correct this on the 2019 return?

[TurboTaxKim]

Generally, when you make a repayment of wages, you can make a claim for the amount you repaid in the year you make the repayment. CRA says to claim this amount on Line 22900 as an Employment Expense. You should get some documentation from the employer that states how much and when you made the repayment, as well as any other relevant details as CRA may request proof.

From CRA:

Repayment of salary or wages – You can claim salary or wages you reported as income for 2019 or a previous year if you repaid them in 2019. This includes amounts you repaid for a period when you were entitled to receive wage-loss replacement benefits or workers' compensation benefits. However, you cannot claim more than the income you received when you did not perform the duties of your employment.

To make this claim in TurboTax, navigate to the Employment Expense section by using the "Find" feature or from the sidebar of TurboTax. When you reach the page "Employment Expense Profile", check the box beside Other Employment Expenses. Continue to the page "Other Employment Expenses" and enter it in the box titled the same. 

The screenshot belows shows where to make this entry.

[RyGig]

I do have the appropriate documentation provided by my employer.

Thank you for your response.

[Matt890]

There is a Request for Loss Carryback form you can use to go retro if the amount you are deducting is higher than your 2019 income