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First tax refund and CCB

mhbin

Star Member
Mar 22, 2015
183
3
Hello everyone,

As a newcomer of 2018, I filed my first tax return this year. It seems I will have around $3000 refund.

The government was paying us CCB, GST/HST and Trillium etc, all of those benefits; and I've also been working since the day I landed.

So, how will the CRA take back this overpaid benefits? Will they cut it from the refund, or send me a separate notice to pay it back, or cut it from our future CCB payments?

Thanks.
 

canuck78

VIP Member
Jun 18, 2017
52,959
12,759
They will recalculate benefits for the next year Trillium included. Your income must be quite low if you qualified for a refund unless you overpaid your taxes. If you get a job with benefits you must inform them asap because your coverage will be cancelled as soon as you have benefits.
 

mhbin

Star Member
Mar 22, 2015
183
3
Thanks.
I told them last year when I was applying for the CCB that I have a job already. They said benefits are calculated as to the previous year's tax refund. That's why I have been paid high benefits so far.
My income is not low actually, and I don't understand why I have so high tax refund. Now I try to understand how they will get back those overpaid benefits last year.
What does it mean job with benefits?
 

canuck78

VIP Member
Jun 18, 2017
52,959
12,759
Thanks.
I told them last year when I was applying for the CCB that I have a job already. They said benefits are calculated as to the previous year's tax refund. That's why I have been paid high benefits so far.
My income is not low actually, and I don't understand why I have so high tax refund. Now I try to understand how they will get back those overpaid benefits last year.
What does it mean job with benefits?
As you already said benefits are based on previous year’s income. Assume you didn’t in 2017 or in currency is worth a lot less compared to the Canadian dollar. You won’t have to pay back any benefits but they will be reassessed and you will likely get less this year. Extended benefits are plans that cover part or all of your medication costs, dental care, glasses and eye exam, etc. Most people who get Trillium don’t have extended benefits from work. It is one of the major questions on the Trillium application and you need to advise Trillium if it changes because you are expected to use your workplace benefit program first.

I am very puzzled as to why you are getting a tax refund if you are in a decent paying job for 2018. Were you paying taxes owed quarterly and overpaid? I would be looking into this since usually you pay taxes not get a refund if you have a good income.
 

mhbin

Star Member
Mar 22, 2015
183
3
As you already said benefits are based on previous year’s income. Assume you didn’t in 2017 or in currency is worth a lot less compared to the Canadian dollar. You won’t have to pay back any benefits but they will be reassessed and you will likely get less this year. Extended benefits are plans that cover part or all of your medication costs, dental care, glasses and eye exam, etc. Most people who get Trillium don’t have extended benefits from work. It is one of the major questions on the Trillium application and you need to advise Trillium if it changes because you are expected to use your workplace benefit program first.

I am very puzzled as to why you are getting a tax refund if you are in a decent paying job for 2018. Were you paying taxes owed quarterly and overpaid? I would be looking into this since usually you pay taxes not get a refund if you have a good income.
I have dental, vision and medication benefits for everyone in my family through my job.

When I was filing my tax return, first I tried to use the Simpletax software. It showed me around $3000 refund. I thought I must be doing something wrong. So, I decided to continue with an accountant. I hired one of the best accountants in my area, he did my tax returns, and this was the result:

(Refund) / balance owing = (3,277|70)

So Simpletax and accountant both came to the same conclusion.

I haven't done anything by myself about tax. I am a full-time employee, so my employer was paying my income tax.
 

canuck78

VIP Member
Jun 18, 2017
52,959
12,759
I have dental, vision and medication benefits for everyone in my family through my job.

When I was filing my tax return, first I tried to use the Simpletax software. It showed me around $3000 refund. I thought I must be doing something wrong. So, I decided to continue with an accountant. I hired one of the best accountants in my area, he did my tax returns, and this was the result:

(Refund) / balance owing = (3,277|70)

So Simpletax and accountant both came to the same conclusion.

I haven't done anything by myself about tax. I am a full-time employee, so my employer was paying my income tax.
You need to contact the Trillium drug plan and inform them when you started insurance policy. Hopefully you updated your pharmacy with your drug plan so it wasn’t going through Trillium or OHIP+. You must have had a lower income for 2018 for you to get a $3000 refund. Companies don’t pay your personal taxes.
 

mhbin

Star Member
Mar 22, 2015
183
3
Yes, my pharmacy using my drug plan since the beginning.
What is considered as low income?