Tax wiki
s. 122.61
PART I — Income Tax · DIVISION E — Computation of Tax · SUBDIVISION A.1 — Canada Child Benefit
Deemed overpayment
Not yet annotated · Text current to 2026-06-21 · section last amended 2021-05-06
Current text
If a person and, if the Minister so demands, the person’s cohabiting spouse or common-law partner at the end of a taxation year have filed a return of income for the year, an overpayment on account of the person’s liability under this Part for the year is deemed to have arisen during a month in relation to which the year is the base taxation year, equal to the amount determined by the formula
(A + M)/12
where
is the amount determined by the formula
E − Q
where
is the total of
the product obtained by multiplying $6,400 by the number of qualified dependants in respect of whom the person was an eligible individual at the beginning of the month who have not reached the age of six years at the beginning of the month, and
the product obtained by multiplying $5,400 by the number of qualified dependants, other than those qualified dependants referred to in paragraph (a), in respect of whom the person was an eligible individual at the beginning of the month, and
is
if the person’s adjusted income for the year is less than or equal to $30,000, nil,
if the person’s adjusted income for the year is greater than $30,000 but less than or equal to $65,000, and if the person is, at the beginning of the month, an eligible individual in respect of
only one qualified dependant, 7% of the person’s adjusted income for the year in excess of $30,000,
only two qualified dependants, 13.5% of the person’s adjusted income for the year in excess of $30,000,
only three qualified dependants, 19% of the person’s adjusted income for the year in excess of $30,000, or
more than three qualified dependants, 23% of the person’s adjusted income for the year in excess of $30,000, and
if the person’s adjusted income for the year is greater than $65,000, and if the person is, at the beginning of the month, an eligible individual in respect of
only one qualified dependant, the total of $2,450 and 3.2% of the person’s adjusted income for the year in excess of $65,000,
only two qualified dependants, the total of $4,725 and 5.7% of the person’s adjusted income for the year in excess of $65,000,
only three qualified dependants, the total of $6,650 and 8% of the person’s adjusted income for the year in excess of $65,000, or
more than three qualified dependants, the total of $8,050 and 9.5% of the person’s adjusted income for the year in excess of $65,000,
is the amount determined by the formula
N – O
where
is the product obtained by multiplying $2,730 by the number of qualified dependants in respect of whom both
an amount may be deducted under section 118.3 for the taxation year that includes the month, and
the person is an eligible individual at the beginning of the month, and
is
if the person’s adjusted income for the year is less than or equal to $65,000, nil, and
if the person’s adjusted income for the year is greater than $65,000,
where the person is an eligible individual in respect of only one qualified dependant described in N, 3.2% of the person’s adjusted income for the year in excess of $65,000, and
where the person is an eligible individual in respect of two or more qualified dependants described in N, 5.7% of the person’s adjusted income for the year in excess of $65,000.
COVID-19 — additional amount
(1.01)If the month referred to in subsection (1) is May 2020, each amount expressed in dollars referred to in paragraphs (a) and (b) of the description of E in subsection (1) is deemed, for that month, to be equal to that amount (as adjusted under subsection (5)) plus an additional amount of $3,600. For greater certainty, the adjustment in subsection (5) shall not take into account this additional amount.
Shared-custody parent
(1.1)Notwithstanding subsection (1), if an eligible individual is a shared-custody parent in respect of one or more qualified dependants at the beginning of a month, the overpayment deemed by subsection (1) to have arisen during the month is equal to the amount determined by the formula
1/2 × (A + B)
where
is the amount determined by the formula in subsection (1), calculated without reference to this subsection, and
is the amount determined by the formula in subsection (1), calculated without reference to this subsection and subparagraph (b)(ii) of the definition eligible individual in section 122.6.
Deemed overpayment — COVID-19
(1.2)If the Minister determines before 2024 that an overpayment (for greater certainty, in an amount greater than nil) on account of a person’s liability under this Part for a taxation year is deemed to have arisen during a month under subsection (1), or would be so deemed if this section were read without reference to subsection (2), then an overpayment on account of the person’s liability under this Part for the year is deemed to have arisen during the month, equal to the total of all amounts each of which is an amount in respect of a qualified dependant — in respect of whom the person was an eligible individual at the beginning of the month who has not reached the age of six years at the beginning of the month — determined by the formula
A × B
where
is
0.5, if the person is a shared-custody parent in respect of the qualified dependant, and
1, in any other case; and
is
if the month is January 2021 or April 2021,
$300, if the person’s adjusted income for 2019 is less than or equal to $120,000, and
$150 in any other case,
if the month is July 2021 or October 2021,
$300, if the person’s adjusted income for 2020 is less than or equal to $120,000, and
$150 in any other case, and
in any other case, nil.
Exceptions
(2)Notwithstanding subsection (1), if a particular month is the first month during which an overpayment that is less than $20 (or such other amount as is prescribed) is deemed under that subsection to have arisen on account of a person’s liability under this Part for the base taxation year in relation to the particular month, any such overpayment that would, but for this subsection, reasonably be expected at the end of the particular month to arise during another month in relation to which the year is the base taxation year is deemed to arise under that subsection during the particular month and not during the other month.
Non-residents and part-year residents
(3)For the purposes of this section, if a person was non-resident at any time in a taxation year, the person’s income for the year is, for greater certainty, deemed to be the amount that would have been the person’s income for the year had the person been resident in Canada throughout the year.
Effect of bankruptcy
(3.1)For the purposes of this Subdivision, where in a taxation year an individual becomes bankrupt,
the individual’s income for the year shall include the individual’s income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy; and
the total of all amounts deducted under section 63 in computing the individual’s income for the year shall include the amount deducted under that section for the individual’s taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy.
[Repealed, 1998, c. 21, s. 94]
Amount not to be charged, etc.
(4)A refund of an amount deemed by this section to be an overpayment on account of a person’s liability under this Part for a taxation year
shall not be subject to the operation of any law relating to bankruptcy or insolvency;
cannot be assigned, charged, attached or given as security;
does not qualify as a refund of tax for the purposes of the Tax Rebate Discounting Act;
cannot be retained by way of deduction or set-off under the Financial Administration Act; and
is not garnishable moneys for the purposes of the Family Orders and Agreements Enforcement Assistance Act.
Annual adjustment
(5)Each amount expressed in dollars in subsection (1) shall be adjusted so that, where the base taxation year in relation to a particular month is after 2016, the amount to be used under that subsection for the month is the total of
the amount that would, but for subsection (7), be the relevant amount used under subsection (1) for the month that is one year before the particular month, and
the product obtained by multiplying
the amount referred to in paragraph (a)
by
the amount, adjusted in such manner as is prescribed and rounded to the nearest one-thousandth or, where the result obtained is equidistant from 2 such consecutive one-thousandths, to the higher thereof, that is determined by the formula
(A/B) − 1
where
is the Consumer Price Index (within the meaning assigned by subsection 117.1(4)) for the 12-month period that ended on September 30 of the base taxation year, and
is the Consumer Price Index for the 12 month period preceding the period referred to in the description of A.
[Repealed, 1998, c. 21, s. 93]
Additions to NCB supplement — July 2005 and 2006
(6)Each amount referred to in the description of F in subsection (1) that is to be used for the purpose of determining the amount deemed to be an overpayment arising during months that are
after June 2005 and before July 2006, is to be replaced with the amount that is the total of $185 and the amount otherwise determined under subsection (5) for those months; and
after June 2006 and before July 2007, is to be replaced with the amount that is the total of $185 and the amount otherwise determined, for those months, by applying subsection (5) to the amount determined under paragraph (a).
Agreement with a province
(6.1)Notwithstanding subsection (5), for the purposes of any agreement referred to in section 122.63 with respect to overpayments deemed to arise during months that are after June 2001 and before July 2002, the amount determined under subparagraph (5)(b)(ii) for a month referred to in paragraph (6)(b) is deemed to be 0.012.
Rounding
(7)If an amount referred to in subsection (1), when adjusted as provided in subsection (5), is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant from 2 such consecutive multiples, to the higher thereof.
Source: Justice Laws Website. Not an official version.
Historic text
Immediately preceding version, in force from 2020-03-25 to 2021-05-05:
Show the text in force 2020-03-25 to 2021-05-05
Deemed overpayment
122.61 (1) If a person and, if the Minister so demands, the person’s cohabiting spouse or common-law partner at the end of a taxation year have filed a return of income for the year, an overpayment on account of the person’s liability under this Part for the year is deemed to have arisen during a month in relation to which the year is the base taxation year, equal to the amount determined by the formula
(A + M)/12
where
Ais the amount determined by the formulaMis the amount determined by the formulaE − Q
where
Eis the total of(a) the product obtained by multiplying $6,400 by the number of qualified dependants in respect of whom the person was an eligible individual at the beginning of the month who have not reached the age of six years at the beginning of the month, and
(b) the product obtained by multiplying $5,400 by the number of qualified dependants, other than those qualified dependants referred to in paragraph (a), in respect of whom the person was an eligible individual at the beginning of the month, and
(a) if the person’s adjusted income for the year is less than or equal to $30,000, nil,
(b) if the person’s adjusted income for the year is greater than $30,000 but less than or equal to $65,000, and if the person is, at the beginning of the month, an eligible individual in respect of
(i) only one qualified dependant, 7% of the person’s adjusted income for the year in excess of $30,000,
(ii) only two qualified dependants, 13.5% of the person’s adjusted income for the year in excess of $30,000,
(iii) only three qualified dependants, 19% of the person’s adjusted income for the year in excess of $30,000, or
(iv) more than three qualified dependants, 23% of the person’s adjusted income for the year in excess of $30,000, and
(c) if the person’s adjusted income for the year is greater than $65,000, and if the person is, at the beginning of the month, an eligible individual in respect of
(i) only one qualified dependant, the total of $2,450 and 3.2% of the person’s adjusted income for the year in excess of $65,000,
(ii) only two qualified dependants, the total of $4,725 and 5.7% of the person’s adjusted income for the year in excess of $65,000,
(iii) only three qualified dependants, the total of $6,650 and 8% of the person’s adjusted income for the year in excess of $65,000, or
(iv) more than three qualified dependants, the total of $8,050 and 9.5% of the person’s adjusted income for the year in excess of $65,000,
N – O
where
Nis the product obtained by multiplying $2,730 by the number of qualified dependants in respect of whom both(a) an amount may be deducted under section 118.3 for the taxation year that includes the month, and
(b) the person is an eligible individual at the beginning of the month, and
(a) if the person’s adjusted income for the year is less than or equal to $65,000, nil, and
(b) if the person’s adjusted income for the year is greater than $65,000,
(i) where the person is an eligible individual in respect of only one qualified dependant described in N, 3.2% of the person’s adjusted income for the year in excess of $65,000, and
(ii) where the person is an eligible individual in respect of two or more qualified dependants described in N, 5.7% of the person’s adjusted income for the year in excess of $65,000.
COVID-19 — additional amount
(1.01) If the month referred to in subsection (1) is May 2020, each amount expressed in dollars referred to in paragraphs (a) and (b) of the description of E in subsection (1) is deemed, for that month, to be equal to that amount (as adjusted under subsection (5)) plus an additional amount of $3,600. For greater certainty, the adjustment in subsection (5) shall not take into account this additional amount.
Shared-custody parent
(1.1) Notwithstanding subsection (1), if an eligible individual is a shared-custody parent in respect of one or more qualified dependants at the beginning of a month, the overpayment deemed by subsection (1) to have arisen during the month is equal to the amount determined by the formula
1/2 × (A + B)
where
Ais the amount determined by the formula in subsection (1), calculated without reference to this subsection, andBis the amount determined by the formula in subsection (1), calculated without reference to this subsection and subparagraph (b)(ii) of the definition eligible individual in section 122.6.Exceptions
(2) Notwithstanding subsection (1), if a particular month is the first month during which an overpayment that is less than $20 (or such other amount as is prescribed) is deemed under that subsection to have arisen on account of a person’s liability under this Part for the base taxation year in relation to the particular month, any such overpayment that would, but for this subsection, reasonably be expected at the end of the particular month to arise during another month in relation to which the year is the base taxation year is deemed to arise under that subsection during the particular month and not during the other month.
Non-residents and part-year residents
(3) For the purposes of this section, if a person was non-resident at any time in a taxation year, the person’s income for the year is, for greater certainty, deemed to be the amount that would have been the person’s income for the year had the person been resident in Canada throughout the year.
Effect of bankruptcy
(3.1) For the purposes of this Subdivision, where in a taxation year an individual becomes bankrupt,
(a) the individual’s income for the year shall include the individual’s income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy; and
(b) the total of all amounts deducted under section 63 in computing the individual’s income for the year shall include the amount deducted under that section for the individual’s taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy.
(c) [Repealed, 1998, c. 21, s. 94]
Amount not to be charged, etc.
(4) A refund of an amount deemed by this section to be an overpayment on account of a person’s liability under this Part for a taxation year
(a) shall not be subject to the operation of any law relating to bankruptcy or insolvency;
(b) cannot be assigned, charged, attached or given as security;
(c) does not qualify as a refund of tax for the purposes of the Tax Rebate Discounting Act;
(d) cannot be retained by way of deduction or set-off under the Financial Administration Act; and
(e) is not garnishable moneys for the purposes of the Family Orders and Agreements Enforcement Assistance Act.
Annual adjustment
(5) Each amount expressed in dollars in subsection (1) shall be adjusted so that, where the base taxation year in relation to a particular month is after 2016, the amount to be used under that subsection for the month is the total of
(a) the amount that would, but for subsection (7), be the relevant amount used under subsection (1) for the month that is one year before the particular month, and
(b) the product obtained by multiplying
(i) the amount referred to in paragraph (a)
by
(ii) the amount, adjusted in such manner as is prescribed and rounded to the nearest one-thousandth or, where the result obtained is equidistant from 2 such consecutive one-thousandths, to the higher thereof, that is determined by the formula
(A/B) − 1
where
Ais the Consumer Price Index (within the meaning assigned by subsection 117.1(4)) for the 12-month period that ended on September 30 of the base taxation year, andBis the Consumer Price Index for the 12 month period preceding the period referred to in the description of A.
(5.1) [Repealed, 1998, c. 21, s. 93]
Additions to NCB supplement — July 2005 and 2006
(6) Each amount referred to in the description of F in subsection (1) that is to be used for the purpose of determining the amount deemed to be an overpayment arising during months that are
(a) after June 2005 and before July 2006, is to be replaced with the amount that is the total of $185 and the amount otherwise determined under subsection (5) for those months; and
(b) after June 2006 and before July 2007, is to be replaced with the amount that is the total of $185 and the amount otherwise determined, for those months, by applying subsection (5) to the amount determined under paragraph (a).
Agreement with a province
(6.1) Notwithstanding subsection (5), for the purposes of any agreement referred to in section 122.63 with respect to overpayments deemed to arise during months that are after June 2001 and before July 2002, the amount determined under subparagraph (5)(b)(ii) for a month referred to in paragraph (6)(b) is deemed to be 0.012.
Rounding
(7) If an amount referred to in subsection (1), when adjusted as provided in subsection (5), is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant from 2 such consecutive multiples, to the higher thereof.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 1994, c. 7, Sch. VII, s. 12
- 1997, c. 26, s. 80
- 1998, c. 19, s. 141, c. 21, ss. 93, 94
- 1999, c. 26, s. 36
- 2000, c. 12, s. 142, c. 14, s. 40, c. 19, s. 33, 73
- 2001, c. 17, s. 110
- 2003, c. 15, s. 77
- 2005, c. 30, s. 8
- 2006, c. 4, ss. 71, 177
- 2010, c. 25, s. 25
- 2011, c. 24, s. 38
- 2013, c. 40, s. 52
- 2016, c. 7, s. 29, c. 12, s. 43
- 2017, c. 20, s. 30
- 2018, c. 12, s. 17
- 2020, c. 5, s. 3
Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 122.61 links to the one before it.
Enacting and amending legislation
- 1994, c. 7, Sch. VII, s. 12; 1997, c. 26, s. 80; 1998, c. 19, s. 141, c. 21, ss. 93, 94; 1999, c. 26, s. 36; 2000, c. 12, s. 142, c. 14, s. 40, c. 19, s. 33, 73; 2001, c. 17, s. 110; 2003, c. 15, s. 77; 2005, c. 30, s. 8; 2006, c. 4, ss. 71, 177; 2010, c. 25, s. 25; 2011, c. 24, s. 38; 2013, c. 40, s. 52; 2016, c. 7, s. 29, c. 12, s. 43; 2017, c. 20, s. 30; 2018, c. 12, s. 17
- 2020, c. 5, s. 3
- 2021, c. 7, s. 2
Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.
Cross-references
Citation
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 122.61.