Does the EI repayment calculation use just my net income or mine and my spouses together?

[tkieneker]

My net income is far below the $64,000 cap, but when I enter the T4E in TurboTax, the 30% is automatically taken off of our refund amount. As a couple, our net income is over $64,000 and so I'm wondering if that is why? Or perhaps this is an error?

[TurboTaxJennifer · Accepted solution]

EI repayments are based on the individual's net income - not the couple. It may not be an EI repayment, just a matter of not enough tax deducted from the EI payments to cover the tax obligation (quite common unfortunately).

If you have an actual EI payment, the amount will appear on line 235. You can check this on the detailed summary page of your return.

If there's a zero on that line, chances are it's just additional tax payable. You can check this by removing the T4E and looking the difference in lines 420 and 428 of your detailed tax summary (Be sure to put it back in before you file of course).