Receiving Employment Insurance (EI) benefits during the year? If so, you’ll receive a T4E slip from Service Canada outlining the amount you were paid and the taxes withheld. Understanding how to properly report this income on your personal tax return is essential to avoid overpayment, underpayment, or audit issues with the Canada Revenue Agency (CRA).
1. What Is a T4E Slip?
The T4E slip, officially titled “Statement of Employment Insurance and Other Benefits,” is issued by Service Canada to individuals who received EI benefits or similar support payments during the tax year. These benefits are considered taxable income and must be reported when filing your T1 personal tax return.
This slip contains several important boxes, each representing a different component of your benefits, including:
- Box 7: Total EI benefits paid
- Box 15: Income tax deducted
- Box 17: Repayment of EI benefits
- Box 30: Training allowances, if applicable
2. Who Receives a T4E?
You will receive a T4E slip if you collected any of the following during the tax year:
- Regular EI benefits (due to job loss)
- Sickness benefits
- Parental or maternity benefits
- Caregiving benefits
- Training programs sponsored through EI
- COVID-19 EI-related benefits (e.g., recovery benefits)
3. How and When Will You Receive Your T4E?
Service Canada typically issues the T4E by the end of February following the tax year. You can access it:
- Online through your My Service Canada Account
- By mail if you haven’t opted for online delivery
- Through CRA’s My Account tax portal (if linked)
4. Reporting T4E Income on Your Tax Return
EI income from your T4E slip is reported on line 11900 of your T1 General income tax return. Here’s how:
- Locate the amount in Box 14 (or Box 7 in some versions) – this is your total EI benefit income
- Enter that amount on Line 11900
- Include the amount of tax withheld (Box 15) on Line 43700 – Total income tax deducted
5. Repayment of EI Benefits: The Clawback Rule
High-income earners may have to repay a portion of their EI benefits under the “EI Clawback” provision. If your net income exceeds a certain threshold (about $75,000, indexed annually), you may need to repay part of your benefits.
The repayment amount is generally the lesser of:
- 30% of the net income above the threshold, or
- The total regular benefits received during the year
The amount to repay appears in Box 26 of your T4E and is also recorded on Line 23500 of your return as “Employment Insurance Repayment.”
6. Tax Withheld May Be Low
Unlike regular employment income, tax withholding on EI payments is often minimal. This means that although you’re receiving money from the government, you may still owe additional taxes when filing your return, especially if you had other income during the year.
To avoid surprises at tax time, consider setting aside funds or requesting additional withholding from Service Canada during benefit payments.
7. What If You Received Multiple T4E Slips?
It’s possible to receive more than one T4E slip in a year—for example, if you transitioned from regular benefits to sickness benefits. You must report all slips on your tax return. Simply add up the amounts in Box 14 from each slip and enter the total on Line 11900.
8. Interaction with Other Income Sources
If you had a part-time job, contract work, or received CERB/CRB alongside EI, this may increase your total taxable income. Higher income could trigger EI repayment or shift you into a higher tax bracket, increasing your tax bill.
Be sure to enter all other T4s, T4A, or T4A(P) slips appropriately. If you earned self-employment income, this also needs to be reported separately on your return and may impact your overall tax payable.
9. Special COVID-19 EI Reporting (if applicable)
In past years, COVID-related benefits such as CRB or CERB were issued via T4A slips. However, when CERB was rolled into EI after September 2020, it began appearing on T4E slips. For 2025, this is less common, but if you received retroactive payments, they may still show up. Check your slip carefully for clarification.
10. Where to Get Help Reporting T4E
- My Account (CRA): Download T4E slips and view past filings
- Service Canada: Confirm benefit amounts and tax withheld
- Certified tax preparer: For guidance with multi-slip or repayment scenarios
- Community Volunteer Income Tax Program (CVITP): For low-income Canadians
11. Summary: Key T4E Reporting Steps
- Retrieve your T4E slip from Service Canada
- Report Box 14/7 amount on Line 11900 of your tax return
- Report tax withheld (Box 15) on Line 43700
- If Box 26 has an amount, report it on Line 23500 as repayment
- Add all slips if you received more than one
12. Conclusion
EI benefits are a lifeline for many Canadians during times of job loss or family transition. However, they come with tax implications. By accurately reporting your T4E income and understanding repayment triggers, you can avoid unexpected taxes and keep your finances in good standing with the CRA.
Whether you’re reporting for the first time or dealing with complex situations involving multiple income streams, consulting a tax expert or using certified tax software can ensure you file correctly and avoid penalties.
