# Trading stocks while on EI



## moneyhungry87 (Nov 11, 2016)

So i'm currently collecting EI, and trading stocks. Does anyone know if I will have to repay what I received in EI? Technically, i'm unemployed. From what ive read online investment income doesnt count only earned income...


----------



## AltaRed (Jun 8, 2009)

Tax Tips http://www.taxtips.ca/cppandei/eiclawback.htm says it is Net Income that is used for clawback. If so, any investment income counts (and should) count......assuming you can make any money trading stocks.


----------



## gibor365 (Apr 1, 2011)

And how you gonna calculate your capital gain?! On bi-weekly basis (this is how you report to EI, no)?! And what if you had one payment period gain and other lost?


----------



## moneyhungry87 (Nov 11, 2016)

This is a very comprehensive list of what is considered earnings for the purposes of EI
http://www.esdc.gc.ca/en/ei/earnings_chart.page
You'll note that investment income is not included.


----------



## Daniel A. (Mar 20, 2011)

Its calculated at the end of the year based on your tax return.


----------



## AltaRed (Jun 8, 2009)

moneyhungry87 said:


> This is a very comprehensive list of what is considered earnings for the purposes of EI
> http://www.esdc.gc.ca/en/ei/earnings_chart.page
> You'll note that investment income is not included.


Cripes...you have a thick skull  That linked list is simply what counts towards calculation of earnings for EI premium/payment purposes. Investment income clearly does not count for obvious reasons. That calculation has nothing to do with clawback calculations. 

The EI clawback provision is completely different and is based on Net Income less a few deductions. IF you did not like my TaxTips link, try http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/235/ei-eng.html Line 234 is all inclusive (Net Income before adjustments).


----------



## mordko (Jan 23, 2016)

Yes you should learn to read and apply that thing that's on your neck. 

However, if you really need to "trade stocks", why don't you "trade stocks" within your TFSA? If you do turn a profit, it will be protected from any claw-back.

Better still - get a job.


----------



## moneyhungry87 (Nov 11, 2016)

thanks gentlemen, but this stands out:

You have to repay part of the EI benefits (line 119) you received in 2016 if all the following conditions are met:

there is an amount in box 15 of your T4E slip;
the rate in box 7 is 30%; and
the result of the following calculation is more than *$63,500*

so I would assume that only 50% of the total capital gains are considered taxable, I would need to make 127k? it looks to me that if I only made 40k I wouldnt have to repay anything since its under the 63.5k threshold.


----------



## AltaRed (Jun 8, 2009)

Have you not looked at a tax return to see where Cap Gains goes from Sch 3 on to the T1? It goes to Line 127 AFTER the number is reduced by 50% on Sch 3 (see Line 199). It is not very complicated.

P.S. Good luck with that trading. Virtually no one makes money long term doing that (other than up markets generally lift all boats). I wouldn't advise it in downward trends.


----------



## moneyhungry87 (Nov 11, 2016)

k so I think the bottom line here is I will only owe if my taxable income line 234 is over 63,500. I don't understand all the hate, im an anonymous poster on the internet asking for help...


"To check if your client may have to repay EI benefits, take the amount reported on Line 234 and subtract the amounts reported on Lines 117 and 125. Then add any amounts deducted on Lines 213 and 232. If the total exceeds $63,500 in 2016, she’ll have to repay some of her EI benefit."


----------



## AltaRed (Jun 8, 2009)

moneyhungry87 said:


> k so I think the bottom line here is I will only owe if my taxable income line 234 is over 63,500. I don't understand all the hate, im an anonymous poster on the internet asking for help...


It appears so. 

There IS an expectation folks will dig at least a little bit for information themselves. I spent a mere few minutes via Google to find the 2-3 links I provided above, and then looked another few minutes at my own tax return to provide the line numbers I gave you above. All of which you could have done for yourself. So.... no hate, but definitely some frustration.


----------



## TomB16 (Jun 8, 2014)

..


----------



## Eclectic12 (Oct 20, 2010)

moneyhungry87 said:


> ... I don't understand all the hate, im an anonymous poster on the internet asking for help ...


It reads more to me as frustration than hate.

You don't see how it could be frustrating to dig out a link that ties directly back to the question at hand then have a response that shows no evidence of reading the provided link, makes no mention of it and talks about a different link?




moneyhungry87 said:


> ... it looks to me that if I only made 40k I wouldnt have to repay anything since its under the 63.5k threshold.


Possibly ... if you are trading in a taxable account *and* are allowed to report the sale of shares as a capital gain.

It sounds like you might meet more than a few of the eight criteria that would change the income reporting from capital gains to business income. 

Where one meets enough of the criteria, instead of a $40K taxable CG - one would be reporting more along the lines of $80K of income (100% of the loss can be deducted instead of just reducing CG so it might vary a bit).
http://www.taxtips.ca/personaltax/investing/taxtreatment/capitalorincome.htm


Cheers


----------



## Beaver101 (Nov 14, 2011)

mordko said:


> Yes you should learn to read and apply that thing that's on your neck.
> 
> However, if you really need to "trade stocks", *why don't you "trade stocks" within your TFSA? *If you do turn a profit, it will be protected from any claw-back. ..


 ...+1. Too bad that the OP hinted he was 30 (and this question) otherwise, who are we to tell him to get a job. Maybe this is his new job.


----------



## mordko (Jan 23, 2016)

Sounds like it. Yes, who are we to try and prevent a train wreck? Like AR said - "good luck".


----------

