Repayment of ELB

so that would go on your 2016 return.

propat

No worries Bud.

Sorry prawnstar , I said I think , when I meant I can. I see the mistake.

I am paying the ELB back this year , 2016 , as I got the SISIP LTD back pay a few days ago. VAC will be sending me a letter telling me how much I have to pay back , which I will use for line 232 , and I have calculated how much also based on my previous income tax returns. Want to make sure it is the same as what I have documented.

1993firebird wrote:Which is what I said.

I thought what you said was a question.

check your ELB T4 look for a box that amount's to what you payed them back . box 30 rings a bell but maybe that's for something else .

anyhow a letter WILL suffice or a separate slip anything from THEM with the proper info should do .

propat

Firebird...according to the CRA your all correct in stating claiming those funds paid back on (Line 232)

Another thing that I was told is that you can only claim this for year in which the funds were distributed from Manulife..in other words if you received the funds before Jan 01 2016 you would claim the funds paid back to VAC on line 232 this year for your 2015 tax return.

If you received the funds after Jan 01 2016 from Manulife you would have to wait for the following year in filing your 2016 return to claim on Line 232 what you paid back to VAC.

That's what I was told so just thought I would pass that on to you.

Which is what I said.

What I did after receiving CPPD was claim the total amount repaid to VAC on line 232. A few months later CRA asked for documentation. I emailed them the letter I received from VAC stating I had in fact repaid ELB. Did not see anything on T4s about this repayment.

you will want to make sure you have the proper documentation you paid this money say a T4 slip or something .

propat

huuummmm simple answer to can you ?YES . should you ??? probably yes .

propat

It would be very simple if I paid back the net ELB amount to VAC and VAC got the income tax back from CRA. I think I can claim the repayment amount on line 232 as it is not income for me so my taxable income should be lower by that amount. It is money coming from Manulife to me for VAC.

Firebird , I could be wrong here but will give my opinion an others can jump in to correct if I'm wrong.

This is the way I believe it to work...you should not claim anything as what you paid back to VAC would also include the tax you paid on that...so what I'm thinking is that whatever you get from your T4 from VAC for 2015 would include everything you were paid in that year.
Now if you paid back two years to VAC this year...you would have to claim the full amount showing on your T4 from VAC for the year 2015...next year for your 2016 T4 you should get from VAC an I'm only going to use figures for example purposes...0$ for total income an let say you paid $10000 in taxes for those two years you paid back this should show on your T4 which you will be able to claim that full amount plus any other taxes you paid in 2016...so you will get most of those taxes paid back to you depending of course on your tax situation...this only for your 2016 tax year.

One other possibility would be that VAC may send you some sort of confirmation this year of the taxes you paid for those two years which would be attached to an adjustment form to submit to the CRA for a reassessment which would be even better.

So perhaps it's best for you to contact both the CRA an VAC an ask them where things stand on this situation.

Does anyone know if repayment of ELB , total two years worth , due to receiving equivalent amount in LTD from SISIP , paid in a lump sum amount can be claimed on line 232?