CRA Says I Was Overpaid Benefits
Why CRA says you were overpaid child benefit or other credits, how it recovers the money, and how to object within 90 days.
The short version
- A benefit overpayment means CRA paid you more child benefit, Groceries and Essentials Benefit, workers benefit or provincial credit than it now thinks you were entitled to. It arrives as a notice of redetermination.
- The usual causes: a reassessment raised your income, a marital status or custody change was reported late, a child moved out, or advance payments ran ahead of what you qualified for.
- CRA usually recovers it by keeping part or all of your future benefits and refunds. You can also pay it, or set up a payment arrangement.
- You have 90 days from the notice to object if you disagree, and the deadline matters more than the amount.
- Hardship? Call the benefits line, 1-800-387-1193. CRA can sometimes reduce how much it keeps from each payment.
CRA Says I Was Overpaid Benefits
Being told to pay back benefits you already spent on groceries and school shoes is about as welcome as frost in June. Before you panic or pay, find out why CRA thinks it overpaid you. Some redeterminations are right and just need a payment plan. A surprising number are wrong, usually because CRA has the wrong picture of who the children live with, and those can be reversed with the right paperwork, on time.
Why It Happens
| Cause | What CRA did | Can it be challenged? |
|---|---|---|
| Your or your spouse's income was reassessed upward | Recalculated the benefit year using the new income | Only by challenging the reassessment itself |
| Marital status changed (together or apart) and CRA heard late | Recalculated from the month after the change | Yes, if the date CRA used is wrong |
| CRA decided the child lives mainly with the other parent, or custody is shared | Removed or halved your entitlement, often back several months or years | Yes, with proof of where the child lived |
| A child left your care, or turned 18 | Stopped benefits from that month | Rarely |
| Residency or status questioned | Stopped benefits for months CRA thinks you weren't eligible | Yes, with proof of residence |
| Workers benefit advances higher than your final entitlement | Took the difference from your refund | Only if your income was wrong |
Why payments stop or drop in the first place is on why benefits stop, and how each benefit is worked out on Canada child benefit and Canada workers benefit.
Got a notice of redetermination?
Upload it. The analyzer explains which months and which benefit CRA changed, how it got to the amount, and the date your 90 days run out.
What to Do, in Order
- Find the notice in My Account and note the date. Your 90-day objection deadline runs from it.
- Work out why. The notice and any review letter before it say what CRA changed: income, marital status, the child, residence.
- If CRA is right, do nothing and it recovers the amount from future benefits and refunds, or pay it, or call to arrange payments.
- If CRA is wrong, gather proof and file a notice of objection within 90 days. For custody: school, daycare and medical records showing the child's address, a custody order or agreement, letters from professionals who know the family.
- Keep filing on time, both of you, every year, so the next benefit year starts clean; see do I have to file?
Sure the child lives with you, or the dates are wrong?
The CRA objection SmartFile builds the objection for a benefit redetermination: the 90-day deadline, a clear statement of facts, and a list of the custody and residence evidence to attach.
Paying It Back Without Wrecking the Budget
- Automatic recovery: CRA keeps future benefit payments and tax refunds until the overpayment is cleared.
- Too much at once? Call 1-800-387-1193 and explain your situation; CRA can sometimes spread the recovery out. More numbers on how to contact CRA.
- Want to pay faster? Pay in My Account; see payment arrangements for spreading it over time.
- Taxpayer relief cancels penalties and interest, not the overpayment itself; see taxpayer relief.
Not sure the balance is even a benefit overpayment? See CRA says I owe money I don't owe.
Benefit Overpayment Questions
Why does CRA say I was overpaid benefits?
Usually because your family income was reassessed, a change in marital status or custody was reported late, a child left your care, CRA questioned your residency, or advance payments were more than you qualified for. The notice of redetermination explains the change.
How does CRA collect a benefit overpayment?
By keeping part or all of your future benefit payments and tax refunds until it is repaid. You can also pay it directly or arrange to pay over time.
How long do I have to dispute a benefit overpayment?
90 days from the date of the notice of redetermination. File a notice of objection in My Account or on form T400A.
What proof do I need if CRA says my child doesn’t live with me?
Documents showing the child’s address and who cares for them: school, daycare or medical records, a custody order or agreement, and letters from people who know the family, covering the months in question.
Can CRA forgive a benefit overpayment?
Generally not. Taxpayer relief applies to penalties and interest, not to benefits you were not entitled to. If repayment causes hardship, ask CRA to reduce the amount withheld from each payment.
CRA says I have to pay back Canada child benefit. Why?
Usually because CRA recalculated the CCB after a change: a reassessed return, a new spouse or separation, a child who moved out, or shared custody not reported. The letter explains the period and amount; you can ask for a review or object if it is wrong.
Why does CRA want my GST/HST credit or Groceries and Essentials Benefit back?
Usually because your family income was reassessed higher, your marital status changed, or a child left your care. CRA normally recovers it from future benefits or refunds; you can ask for a payment arrangement or a review.
Sources: CRA, Canada child benefit; Contact the CRA. Checked October 2026. Whether CRA will reduce recovery for hardship is decided case by case; we can't promise an outcome. COVID-era benefit repayments (CERB and others) follow separate rules and are not covered here.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.