Only payments made in cash from your personal funds – by cheque or through online banking – are tax deductible (i.e., non-registered funds). You can claim the deduction on line 207 of your annual income tax return.
The amount you can deduct from your buyback depends on the amount of your taxable income in the year you buy back the credit. Your payments can only be deducted in the tax year in which they were made. You cannot carry forward non-deducted amounts to the following tax year.
We'll send you a tax receipt in February for any payments you make from your personal funds.
Service prior to Jan. 1, 1990
For service before Jan. 1, 1990, tax deductibility rules hinge on whether you contributed to a registered pension plan during your absence. Please contact us for details.