If benefits are cancelled within the allowed time period (12 months or CPP and 6 months for OAS) and benefits are repaid, how will the tax return(s) be adjusted to remove this income?
Will there be amended slip to remove the income or include the income and a deduction under “other”?
Thanks.
I had one of those last year that straddle two calendar year. Meaning she got the CPP in 2022, and repaid it in 2023.
I had to contact CRA to sort out the correct course of action. In that situation, the taxpayer had to report all the income in 2022, and will be able to claim a deduction in 2023.
My understanding is that if the repayment occurred in the same year, the deduction would be claim concurrently with the income and net to the correct amount.
CRA did not make mention whether Service Canada would amend the T4AP if repaid in the same year. Perhaps that depend on timing of repayment and how long Service Canada takes to process it.
Thanks for your response. I called Service Canada and the agent said that in some cases it would be possible to amend the T-slip, but he didn’t seem to know for sure.
I encountered that as well last year except my client got completely scrooged.
The client passed away in October of 2021. The funeral home notified Service Canada of her passing. Due to the excuse that (Non) Service Canada and other government agencies were using back then for their lack of service the OAS payments didn’t stop until January of 2022.
In about February of 2022 the estate received a bill to recover about 1,400 in OAS over payment.
When the 2021 T1 was filed it turns out the client was forced to report 100% of the OAS that was paid during 2021 (12 months instead of 10 months). Since the client had a considerable amount in RRIF’s on death her income was over the upper end of the OAS clawback threshold (social benefit repayment). Essentially she repaid 100% of the OAS on her 2021 tax return… in addition to the actual amount refunded to Service Canada.
In early 2023 the estate received a nifty tax deduction slip (ISP-1611) called “Reimbursement of Benefit Paid During a Previous Year” that could be deducted on her 2022 tax return. I remember the receipt number was 3710 so presumably over 3700 people encountered this type of issue.
We tried to have the amount applied to her 2021 T1 return but were turned down with the explanation that it could only be applied to her 2022 T1 return since that was the year of repayment. Unfortunately she wouldn’t be filing a 2022 T1 return due to her death in 2021.
In the end the poor lady ended up repaying all of her 2021 OAS when she filed her 2021 T1 return (including the payments for November and December 2021), then those amounts were directly paid back to Service Canada.
She was overpaid about 1,400 in OAS but ended up repaying 2,800. 
What do they say about death and double taxes?
Wow, that’s awful. Thanks for your response.
I was on PWD for 6months when CPPd sent letters inviting me to apply. So I did, thinking I was helping the cause. Turns out after being accepted for it 21/2 yrs later, my retroactive was $35,642 which they promptly took, lving me $26.44. Now they are charging taxes on $41,354. I am not competent, nor allowed to sign forms. The devastation and damage done to me and my health over the stress, time and treatment of myself has exacerbated my chronic heart disease, anxiety, blood pressure, memory loss and depression. I didn’t want CPP, I was happy on PWDd. Now monthly cheque is over $300 shorter + payback interest on taxes and as a single parent and covid, interest and inflation has me over $29,000 since Jan.23
1)can I cancel cpp
2)can I void said signed letter letter. asked to see it, still haven’t
3)take the govt to court
4) get anything back or take off interest charges on something I never got
5) who’s money is it when given S.Assistance. Is it a loan? punishment for being disabled? why did I have to pay it back?
We don’t have enough information here to help. You should see a local accountant to help you with this.