You do not have to claim your income tax refund as income on your EI report
A tax refund is not income. When the Canada Revenue Agency sends you money back, it is a return of taxes you already paid — not new earnings. EI (Employment Insurance) asks you to report income you earned during the week or month, not money the government is returning to you. Your tax refund does not belong in that box.
This applies whether your refund arrives as a direct deposit, cheque, or credit to your account. The source does not matter. What matters is that a refund is a correction of past tax, not current income.
Key Takeaways
- Tax refunds are not income and should not be reported on your EI statement, whether they arrive by direct deposit, cheque, or any other method.
- EI asks only about money you earned through work during the reporting period, not money returned to you by the government.
- If you received a refund and reported it by mistake, contact Service Canada to correct your EI record before overpayment grows.
- Other government payments like GST credits or Canada Child Benefit payments also do not count as income for EI purposes.
- Your EI benefits themselves are taxable, which means you may receive a tax refund the following year based on EI you reported — but that refund still does not count as current income.
Why the CRA sends refunds and why EI does not count them
When you file your tax return, you report all the income you earned that year. The CRA calculates how much tax you owe based on that income. If your employer or other sources withheld more tax than you actually owe, the CRA refunds the difference. That refund is simply giving back money that was already yours — it is not new income.
EI tracks your earnings to determine whether you are still may have access to to benefits and how much you should receive. If you earned money during a week or month, that counts. If the government is returning tax you overpaid, that does not change your earnings for that period. The refund has no effect on your EI entitlement.
Service Canada's reporting system is built around work income only. The agency does not ask about government transfers, tax corrections, or refunds because none of those represent earnings. Reporting them creates confusion and can trigger overpayment notices.
What you should report on your EI statement instead
Report only money you earned through work. This includes wages from a job, self-employment income, tips, commissions, and any other earnings. If you worked part-time while receiving EI, report those hours and earnings. If you earned nothing that week or month, report zero.
Do not report government payments like tax refunds, GST credits, Canada Child Benefit payments, or other transfers. These are not earnings. Report only what you were paid for work you did.
When you file your EI statement online through My Service Account or by phone, you will see a field asking about earnings. That field is specifically for work income. Tax refunds, even if they arrived that same week, go in a different category — which is no category at all on the EI form.
If you already reported your refund by mistake
Contact Service Canada by phone at 1-866-864-9735 or through your My Service Account online. Explain that you reported a tax refund as income and ask them to correct your EI record. Have your refund amount and the date you received it ready when you call.
Correcting a mistake early prevents overpayment. If Service Canada paid you more EI than you were may have access to to because of the error, they will ask you to repay the difference. The sooner you report the mistake, the smaller the amount is likely to be. Service Canada can backdate the correction to the week the refund arrived.
How tax refunds and EI interact over time
Your EI benefits are taxable income. When you file your tax return for the year, you will report the EI you received as income. If too much tax was withheld from your EI payments, you will receive a refund the following year. That refund is tied to the EI you reported, but the refund itself is still not income — it is a return of overpaid tax.
This cycle can repeat: you receive EI, report it on your taxes, get a refund, and the refund does not affect your current EI reporting. Each step is separate. The refund you receive in year two is based on year one's EI, but it does not become income in year two.
Other government payments that do not count as EI income
Tax refunds are not alone. Several other government payments should not be reported on your EI statement:
- GST/HST credit refunds
- Canada Child Benefit payments
- Registered Disability Savings Plan grants or bonds
- Canada Pension Plan or Old Age Security payments (though these may affect EI may be able to access in other ways)
- Provincial tax credits or refunds
If you are unsure whether a specific payment counts as income for EI, call Service Canada before you report it. It is easier to ask first than to correct a mistake later. Service Canada staff can tell you in one call whether a particular payment belongs on your EI statement.
Frequently Asked Questions
Does a tax refund affect how much EI I can receive?
No. A tax refund is not income and does not change your EI entitlement or payment amount. Only earnings from work affect your EI benefits.
What if my tax refund arrived during the same week I worked?
Report only the money you earned from work that week. The refund is separate and should not be included in your EI statement, regardless of when it arrived.
Can I get in trouble for not reporting a tax refund?
No. Tax refunds are not supposed to be reported on EI statements. You are following the rules correctly by leaving them off.
Should I tell Service Canada about my tax refund for any reason?
Only if you mistakenly reported it already. Otherwise, there is no need to mention it. Service Canada does not track tax refunds as part of EI administration.
What if I received a refund from a previous year while on EI?
It makes no difference when the refund was issued or what year it covers. Refunds are never reported as income on EI statements.