Line 246 - Deduction for a repayment of amounts overpaid to you

Line 246 - Deduction for a repayment of amounts overpaid to you

You can deduct overpayments that you were required to repay in 2025, provided they were included in your income for 2025 or a previous year.

These include:

• social assistance payments and any similar government financial assistance, such as financial assistance received under the Aim for Employment Program (the amount of the repayment is shown in box H of your RL-5 slip);

• research grants;

• scholarships, bursaries or any similar financial assistance (also enter this repayment on line 276 of your return, but only if you claimed a deduction on line 295 in a previous year for the scholarship or bursary in question);

• the Canada Education Savings Grant (CESG);

• income replacement indemnities (if you received an RL-5 slip, the amount of the repayment is shown in box P). Also enter this amount on line 276;

• the Apprenticeship Incentive Grant;

• benefits paid to the parents of a crime victim;

• amounts received in error from a registered pension plan (RPP) or a pooled registered pension plan (PRPP), including a voluntary retirement savings plan (VRSP), or interest on these amounts, provided they do not entitle you to a deduction for RPP or PRPP/VRSP contributions in 2025.

Certain overpayments that you received in 2019 to 2024 and were required to repay in 2025 can be deducted in the year they were included in your income instead of in 2025. The repayments must exceed your taxable income for 2025 and must not have been deducted in a previous year. These include:

• the Old Age Security pension, other than repayments covered on line 250, point 3;

• financial assistance paid by the Ministère de l'Emploi et de la Solidarité sociale;

• net federal supplements (also enter this repayment on line 276 of your return), other than repayments covered on line 250, point 3;

• labour adjustment benefits;

• income assistance payments;

• retiring allowances;

• Employment Insurance benefits shown on the T4E slip, other than repayments covered on line 250, point 3;

• Québec Pension Plan (QPP) and Canada Pension Plan (CPP) benefits;

• Québec parental insurance plan (QPIP) benefits (the amount of the repayment is shown in box D of your RL-6 slip);

• Wage Earner Protection Program (WEPP) payments;

• benefits under the Incentive Program to Retain Essential Workers (IPREW);

• the Canada Emergency Response Benefit (CERB) or Canada Emergency Student Benefit (CESB);

• the Canada Recovery Benefit (CRB), Canada Recovery Sickness Benefit (CRSB) or Canada Recovery Caregiving Benefit (CRCB);

• the Canada Worker Lockdown Benefit (CWLB).

At your request, we can determine whether it is better for you to deduct these repayments in the year they were included in your income or in 2025.
For more information, contact us.

Repayment of social assistance payments

You can deduct social assistance payments that you had to repay in 2025 if you, or your spouse at the time the payments were received, included them in your income for 2025 or a previous year. The amount of the repayment is shown in box H of your RL-5 slip.

Repayment of QPP, CPP, QPIP or Employment Insurance benefits

If, in 2025, you repaid amounts that you received in a previous year under the Québec Pension Plan (QPP), the Canada Pension Plan (CPP), the Québec parental insurance plan (QPIP) or the Employment Insurance Act, see point 8 in the instructions for line 462.

Repayment of a salary, wages or wage loss replacement benefits

If you repaid a salary, wages or wage loss replacement benefits in 2025, see point 12 in the instructions for line 207.

Repayment of income after receiving a retroactive payment of an income replacement indemnity

If, after receiving a retroactive payment of an income replacement indemnity, you repaid an amount included in the calculation of your income for a previous year and the result is a non-capital loss, you can carry the loss back three years or carry it forward twenty years to reduce your taxable income. To carry your loss back to previous years, complete form TP-1012.A-V, Carry-Back of a Loss, and file it separately from your return.

You can carry the loss back more than three years if you use it to reduce your taxable income for the year for which the amount repaid was included in the calculation of your income. However, you cannot carry the loss back to a year before 2004.

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