An overpayment notice means a government program says it paid you more than you were entitled to, and you have to pay it back. It’s stressful, but you have options: check that it’s right, pay it back over time, and dispute it if you think it’s wrong.
What it looks like and who sends it
There are two main kinds.
From the CRA, for benefits it runs: the Canada Child Benefit (CCB), the Canada Groceries and Essentials Benefit (CGEB, formerly the GST/HST credit), provincial benefits paid with them, and the old Canada Carbon Rebate. It’s usually a notice of redetermination that shows a balance owing, with a payment slip (remittance voucher) attached. You’ll also see it in your CRA account.
From Service Canada, for the Canada Pension Plan (CPP), Old Age Security (OAS) and the Guaranteed Income Supplement (GIS). The decision comes from Service Canada, but the CRA collects these debts for it. So you may get a letter from Service Canada explaining the overpayment, and later letters from the CRA about paying it back.
If you got too much in Canada Workers Benefit advance payments, it shows up on your Notice of Assessment instead.
What it means in plain words
Overpayments usually happen because something changed and the program found out later. Common reasons:
- your tax return, or your spouse’s, was reassessed and your income went up
- your marital status changed and wasn’t reported right away
- a child left your care
- you were out of Canada for more than 6 months while getting GIS
- a payment was made after someone died
How repayment works
For CRA benefits, the CRA can keep part or all of your future payments until the debt is paid:
- CCB overpaid: the CRA may keep future CCB, tax refunds and CGEB payments. It will not use your CCB to pay other tax or government debts.
- CGEB overpaid: the CRA will keep future CGEB payments and tax refunds. It also uses CGEB payments to pay other tax or government debts.
Once the debt is paid off, your full payments start again.
Do you need to act?
Yes. Even if the money is being taken from future payments, read the notice and check it. Act soon if:
- you can’t afford the repayment
- you think the amount or the reason is wrong
- the notice mentions a deadline
Exactly what to do
- Find the reason. The notice explains what changed. Compare it with your situation.
- Check your account. Sign in to your CRA account, or My Service Canada Account for CPP and OAS.
- If it’s right and you can pay: pay using the options on the notice or in your CRA account.
- If you can’t pay all at once: call to set up a payment plan. If repaying causes real hardship, even with a plan already set up, the CRA asks you to call and discuss your options.
- If a collections officer wrote to you: call the number in that letter. You can also confirm the right number in your CRA account.
If you think it’s wrong
- CCB or CGEB: first call the CRA benefits line, since updating your information may fix it. You also have the right to file a formal objection to a determination or redetermination. For most individuals, the deadline is the later of 90 days from the notice date or one year after the tax filing deadline.
- CPP, OAS or GIS: ask Service Canada for a reconsideration within 90 days of getting the decision letter. You can do it in My Service Canada Account, with the form for your program, or in writing. If you disagree with the new decision, you can appeal to the Social Security Tribunal.
Keep copies of everything you send.
How to check it’s real
- Real CRA notices are also in your CRA account. Real Service Canada letters come in a beige or white envelope with the Canada wordmark.
- The CRA may ask you to pay a debt, but never by gift card, prepaid card, cryptocurrency or Interac e-transfer, and it never threatens arrest or deportation.
- Call back on a number you find yourself on Canada.ca, not a number from a text or voicemail.
Who to call
- CRA, child and family benefit overpayments and payment plans: 1-888-863-8662, Monday to Friday, 8 am to 8 pm Eastern time.
- CRA, CPP or EI overpayments: 1-866-864-5823. For OAS or GIS debts, use the number on your letter.
- Service Canada, questions about a CPP, OAS or GIS decision: 1-800-277-9914.
- To report a scam: Canadian Anti-Fraud Centre, 1-888-495-8501.