Turbo Tax: Ei Premiums and Line 312





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Q: How does one declare line 312 on their tax return using TurboTax? Can an individual contribute EI premiums if he/she owns more than 40% of the corporation or company? How do EI premium exemptions impact line 450 on T1 General?

A: As shown in the video... One may declare Line 312 using box 18 of T4. The tax payer is exempt from EI contribution is he/she owns more than 40% of the company. Hence, if he/she contributes to EI premiums on T4 slips, then he will have an amount for EI overpayment on his/her T1 general. This figure will be Line 450 on T1 general.

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Procedure

Step 1: Fill in personal information under the personal dialog box on TurboTax

Step 2: Declare Line 312 using box 18 on T4. Verify if this amount reflects Line 312 on T1 General

Step 3: Declare EI exemption under Box 28 of T4 if one is exempt from contributing to EI premiums for any of the reasons listed on CRA's website.

Step 4: If one declares EI exemption, verify if Line 450 shows the figure in box 18 of T4. This line should be nil if one is exempt.

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Relevant Material: "

Line 31200 – Employment insurance premiums through employment

The employment insurance (EI) premiums that you pay are based on your insurable earnings.

The maximum amount you can claim on line 31200 of your return is:

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Relevant Material: "Line 312 on a Canadian tax return refers to Employment Insurance (EI) premiums through employment. This line on Schedule 1 of the federal tax return is used to report the total amount of EI premiums you paid during the tax year. 
Significance of Line 312
  • Reporting Premiums: You enter the total EI premiums withheld from your pay throughout the year, which is typically found in Box 18 of your T4 slips (or Box 14 if Box 24 is blank).
  • Calculating Tax Credits: The amount on Line 312 is a non-refundable tax credit, meaning it helps reduce the amount of federal income tax you have to pay. You can also claim a corresponding provincial or territorial non-refundable tax credit.
  • Determining Overpayments: The Canada Revenue Agency (CRA) uses this line to determine if you have overpaid your EI premiums for the year. You may have an overpayment if you worked for more than one employer and your total premiums exceeded the maximum required amount for the year (for 2024, the maximum was $1,049.12 for residents outside Quebec).
  • Refunds: If you contributed more than the maximum, the CRA will automatically calculate the overpayment and refund the excess amount to you, or use it to reduce any balance owing on your tax return. This overpayment amount is entered on Line 45000 of your return.
  • Minimum Earnings: If your total insurable earnings for the year were $2,000 or less, you do not enter any amount on Line 31200. Instead, you enter the total premiums on Line 45000 to receive a full refund. 
For detailed guidance and current year maximums, consult the official Canada.ca website or relevant tax software help resources like those from TaxTips.ca. .." (Google)
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Location: North America

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