ELB Overpayment

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ELB Overpayment

Post by Willie on Thu 16 Feb 2017, 15:38

When my spouse won his LTD appeal last year he was paid back pay for that duration however he had to repay $30,000+ back to DVA for ELB benefits received during that same time frame. Now when I called DVA they can't tell me if or how we are going to be able to put that amount we paid back to DVA on our income tax in order to reduce the amount of income that we are taxed on. Does anyone have any advice or knowledge on this scenario? Really stressed over this and particularly with DVA's lack of help. They said they had no clue and that the finance people don't call clients or speak to us directly. The best the operator could do was send a message to finance and for us to call back in two weeks in the hopes finance puts a message on our profile.

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Re: ELB Overpayment

Post by Trooper on Thu 16 Feb 2017, 17:27

The CRA would be best to answer or guide you in the right direction on this particular issue.

I'm going to guess that DVA sent you a breakdown on the amount you paid back in the form of a receipt.
I would say it is this receipt with it's breakdown is what is needed to get your tax relief from your 2016 taxes.
Perhaps a T1 adjusting and reassessing the breakdown would solve this.
If the breakdown involves more than one year, a T1 should be able to be used in solving this.

Contact the CRA and see if this avenue is the proper way to get your tax relief.


Last edited by Trooper on Fri 17 Feb 2017, 07:13; edited 1 time in total
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Re: ELB Overpayment

Post by Willie on Thu 16 Feb 2017, 18:24

Thanks Trooper, I will contact CRA.

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Re: ELB Overpayment

Post by BinRat on Thu 16 Feb 2017, 20:27

What will happen you'll get the information from Veterans Affairs, and you'll get the amount of taxes and

then you can claim in on like line 252 of your income tax.

plus I think you have like 10 years to use it all, so if you don't need to use it all at once then it can be spread out

over a 10 year period. Kinda stupid, but thats what I had to do.


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Re: ELB Overpayment

Post by prawnstar on Fri 17 Feb 2017, 13:24

BinRat wrote:What will happen you'll get the information from Veterans Affairs, and you'll get the amount of taxes and

then you can claim in on like line 252 of your income tax.

plus I think you have like 10 years to use it all, so if you don't need to use it all at once then it can be spread out

over a 10 year period. Kinda stupid, but thats what I had to do.

I did the same and it all worked out. Good Luck Willie.

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Re: ELB Overpayment

Post by Willie on Sat 18 Feb 2017, 04:44

Thank you Binrat and prawnstar for your help. I was reviewing the overpayment paperwork and it shows that the overpayment was for 2014 and 2015 timeframe that we paid back last year. Do I have to go back and redo our income taxes for those years or can I include them on our taxes for 2016 as that was the year we made the overpayment back to DVA in? Thank you again for your advice, it is appreciated.

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Re: ELB Overpayment

Post by prawnstar on Sat 18 Feb 2017, 11:28

Not sure about that Willie. You will get a letter from CRA later, asking to clarify the amount in line 252. This is where you will scan all the docs regarding the re-payment and send them in. Have you applied for the disability tax credit?

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Re: ELB Overpayment

Post by Willie on Sat 18 Feb 2017, 17:55

Oh yes I have got the disability tax credit thankfully.

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Re: ELB Overpayment

Post by Willie on Fri 03 Mar 2017, 15:27

I received a letter finally (after numerous inquiries) that states the amount of ELB overpayment that we repaid should be claimed on Line 232 on our taxes. What's up with that. I thought it was Line 252.

I googled Line 232 and it states:

Line 232 - Other deductions

Claim on this line allowable amounts not deducted elsewhere on your return. Provide details in the space to the left of line 232. If you have more than one amount, or to explain your deduction more fully, attach a note to your paper return.
Line 232 - Income amounts repaid

If in 2016 you repaid amounts you received and reported as income (other than salary or wages) for 2016 or a previous year, you can claim most of these amounts on line 232 of your return for 2016:

I am confused because it was ELB, Earning Loss Benefit so based on above isn't it a salary or wage?

Line 252 states:
Line 252 - Non-capital losses of other years
Generally, a non-capital loss for a particular year includes any loss incurred from employment, property or a business.

Is ELB considered employment?

Need help please, really concerned and don't know which line to put it on. Thank you



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Re: ELB Overpayment

Post by prawnstar on Fri 03 Mar 2017, 15:34

Hey Willie. My mistake sorry about that. It is line 232. The elb you are paying back has already been taxed that's why you can claim it on line 232.

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Re: ELB Overpayment

Post by Willie on Fri 03 Mar 2017, 15:48

Thank you so much prawnstar. That is a relief but it stated on line 232 the following. What do I make of that?

If in 2016 you repaid amounts you received and reported as income (other than salary or wages) for 2016 or a previous year, you can claim most of these amounts on line 232 of your return for 2016:

Is ELB considered a salary or wage?

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Re: ELB Overpayment

Post by prawnstar on Fri 03 Mar 2017, 16:01

Yes it is taxable income.

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Re: ELB Overpayment

Post by Trooper on Fri 03 Mar 2017, 16:07

The ELB is neither a wage or salary, it is a Earnings Loss Benefit.

What I would do is send in my return by paper return, I would put what you paid back to DVA on line 232, I would add notes to line 232 to include any copies of receipts you received from DVA for the payback, and include an explanation as to why you paid those funds back.

Also, send in your T1198, and you should be OK.

Take the above info to the CRA via contact, ask or confirm if this is the proper way to complete your 2016 return.
If it's good, your all set, if not, find out what is needed.


Last edited by Trooper on Fri 03 Mar 2017, 16:08; edited 1 time in total
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Re: ELB Overpayment

Post by Willie on Fri 03 Mar 2017, 16:07

Thanks prawnstar, then are we sure Line 232 would be the right line? since it is considered a taxed wage and it is stating "other then salary or wages"
I am not up on tax definitions.

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Re: ELB Overpayment

Post by Willie on Fri 03 Mar 2017, 16:09

Thank you Trooper and Prawnstar. I appreciate it very much.

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