# how does OAS overpayment affect taxable income?



## user (Sep 21, 2009)

My father received some OAS payments during the year but later paid the money back to Service Canada because he turned out to be ineligible for those payments. So, since he returned the money, effectively he received zero OAS payment for the year on a net basis. However, his T4A(OAS) slip still showed the amount he originally received as taxable pension paid. The slip also recorded the amount he paid back as "overpayment recovered". The CRA recently assessed his tax return to include the full amount he received which he was not eligible for, ignoring the fact he paid it back in the same year. Is that right, or has the CRA made a mistake?


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## user (Sep 21, 2009)

I found the answer:



> The amount recovered from your gross OAS pension because of an overpayment you received in a previous period is shown in box 20 of your T4A(OAS) slip. You can claim a deduction on line 232 for the amounts repaid.


http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/113-eng.html


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