Got an Amended Phoenix Pay T4 in 2025 or 2026? Here’s What to Do Next

January 1, 2026

If you got an amended T4 from the Phoenix pay system in 2025 or 2026 , it's easy to fix the issue with CRA. But if you need help from a professional, the government will reimburse you for up to $200 of tax advice related to any Phoenix pay issues between 2016 and 2026. I’ve had more than a few clients looking for a CPA in Ottawa who can help with Phoenix T4 issues. Their T4 was corrected years later, but CRA is still using the original numbers or worse, asking for back taxes on an amount they never actually received.

The Phoenix pay system has caused all kinds of mistakes on T4s for federal employees. One of the most common problems is overpayment that’s repaid in a later year, but never correctly reflected on your original T4.

Here’s how it plays out:

  • CRA thinks you earned more than you actually did.
  • You pay tax on phantom income.
  • You try to fix it but get bounced between departments.

It’s been a nightmare, especially when the problem dates back several years.

You’ll find stories like this all over Reddit:

And the media hasn’t ignored it either. CBC reported on the government demanding repayments years after the fact.

Frequently asked questions: reimbursement for tax advice - Canada.ca

Here’s a checklist that I use with my clients in Ottawa when dealing with amended Phoenix T4s:

1. Request the Corrected T4 from Your Department

Start by contacting your pay centre or department HR. You need a corrected T4 that reflects only the income you actually kept. Overpayments repaid in later years should not inflate your reported income.

If they’ve already issued one for 2025 or 2026, double-check that CRA received it.

2. File a T1 Adjustment With CRA (or CRA "Change my Return")

Once you have the corrected slip, submit a T1 Adjustment Request with CRA. You can do this online through My Account or have your CPA in Ottawa do it through Represent a Client. Attach a copy of the new T4 and any explanation available.

3. Send in a Letter with Documentation

I always advise clients to include a letter explaining what happened especially for Phoenix-related issues. Mention that you received an amended T4, the tax year involved, and provide proof of repayment if possible.

If the overpayment and repayment happened in different years, make sure CRA sees that clearly.

4. Hire a CPA in Ottawa to Help With Your Submission

It’s not enough to just send in the right numbers. You need someone who can advocate for you, explain the adjustments properly, and ensure CRA applies the corrected information. As a CPA in Ottawa, I’ve worked directly with public servants dealing with these exact scenarios. The government will reimburse you for up to $200 of tax advice related to any Phoenix pay issues

I know what documentation works, what language CRA responds to, and how to navigate the process so that it doesn’t drag on another year.

CRA Acknowledges the Issue

CRA is aware of the Phoenix problems and may already have notes on your file. But they still assess based on what's on the T4. If that’s wrong, you have to initiate the correction.

The key is to act quickly, provide proper support, and stay persistent. The government will reimburse you for up to $200 of tax advice related to any Phoenix pay issues

You May Be Eligible for a $200 Reimbursement

The Treasury Board offers reimbursement for tax advisory services related to Phoenix pay issues up to $200. If you hire a CPA to help clean this up, you may be able to get some or all of the cost covered.

Official CRA link:
Reimbursement for Tax Advisory Services

Final Note

If you’ve received an amended T4 from Phoenix for 2025 or 2026, don’t wait. CRA will process it based on the information they have, not what’s fair. You need to take control of the correction process, and that starts with knowing your rights and following the right steps.

Need help from a CPA in Ottawa who has experience with Phoenix-related T4 corrections? I’ve handled it before, and I know what to say and what to file to make it right.

Reach out any time.

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Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without a specific consultation. Lucas CPA Professional Corporation will not be held liable for any problems that arise from the usage of the information provided on this page.