Income Tax Act — I-3.3 122.61
Deemed overpayment 122.61 (1) If a person and, if the Minister so demands, the person’s cohabiting spouse or common-law partner at the end of a taxation year have filed a return of income for the year, an overpayment on account of the person’s liability under this Part for the year is deemed to have arisen during a month in relation to which the year is the base taxation year, equal to the amount determined by the formula (A + M)/12 where A is the amount determined by the formula E − Q where E is the total of (a) the product obtained by multiplying $6,400 by the number of qualified dependants in respect of whom the person was an eligible individual at the beginning of the month who have not reached the age of six years at the beginning of the month, and (b) the product obtained by multiplying $5,400 by the number of qualified dependants, other than those qualified dependants referred to in paragraph (a), in respect of whom the person was an eligible individual at the beginning of the month, and Q is (a) if the person’s adjusted income for the year is less than or equal to $30,000, nil, (b) if the person’s adjusted income for the year is greater than $30,000 but less than or equal to $65,000, and if the person is, at the beginning of the month, an eligible individual in respect of (i) only one qualified dependant, 7% of the person’s adjusted income for the year in excess of $30,000, (ii) only two qualified dependants, 13.5% of the person’s adjusted income for the year in excess of $30,000, (iii) only three qualified dependants, 19% of the person’s adjusted income for the year in excess of $30,000, or (iv) more than three qualified dependants, 23% of the person’s adjusted income for the year in excess of $30,000, and (c) if the person’s adjusted income for the year is greater than $65,000, and if the person is, at the beginning of the month, an eligible individual in respect of (i) only one qualified dependant, the total of $2,450 and 3.2% of the person’s adjusted income for the year in excess of $65,000, (ii) only two qualified dependants, the total of $4,725 and 5.7% of the person’s adjusted income for the year in excess of $65,000, (iii) only three qualified dependants, the total of $6,650 and 8% of the person’s adjusted income for the year in excess of $65,000, or (iv) more than three qualified dependants, the total of $8,050 and 9.5% of the person’s adjusted income for the year in excess of $65,000, M is the amount determined by the formula N – O where N is the product obtained by multiplying $2,730 by the number of qualified dependants in respect of whom both (a) an amount may be deducted under section 118.3 for the taxation year that includes the month, and (b) the person is an eligible individual at the beginning of the month, and O is (a) if the person’s adjusted income for the year is less than or equal to $65,000, nil, and (b) if the person’s adjusted income for the year is greater than $65,000, (i) where the person is an eligible individual in respect of only one qualified dependant described in N, 3.2% of the person’s adjusted income for the year in excess of $65,000, and (ii) where the person is an eligible individual in respect of two or more qualified dependants described in N, 5.7% of the person’s adjusted income for the year in excess of $65,000. COVID-19 — additional amount (1.01) If the month referred to in subsection (1) is May 2020, each amount expressed in dollars referred to in paragraphs (a) and (b) of the description of E in subsection (1) is deemed, for that month, to be equal to that amount (as adjusted under subsection (5)) plus an additional amount of $3,600. For greater certainty, the adjustment in subsection (5) shall not take into account this additional amount. Shared-custody parent (1.1) Notwithstanding subsection (1), if an eligible individual is a shared-custody parent in respect of one or more qualified dependants at the beginning of a month, the overpayment deemed by subsection (1) to have