OVID-19 has affected many people’s livesCOVID-19 has affected many people’s lives, especially those who may have lost their jobs. Fortunately, the federal government has generously helped Canadians by providing financial assistance. Let’s take a further look at how this may affect your tax return.

Are the COVID-19 Benefits Taxable?

The answer is yes. The COVID-19 benefits are considered taxable and have been added to your taxable income. Here is a list of the following benefits:

• CRB- Canada Recovery Benefit
• CERB- Canada Emergency Response Benefit
• CESB- Canada Emergency Student Benefit
• CRCB- Canada Recovery Sickness Benefit
• CRCB- Canada Recovery Caregiving Benefit

Note: Some benefits like CERB do not include tax when paid out to individuals, meaning that they would have to pay in full upon their tax return. 

Where will I find these amounts on my tax return?

Here is where you can find this information:

• Boxes 197-204 on a T4A Slip
• The CERB may be included on a T4E Slip Box 14

What if I have a balance owing on my 2021 tax return?

Many Canadians may be worried about having an owing balance on their tax return. If this applies to you, then we have good news. Fortunately, the government has announced that if you have received any form of COVID-19 benefits and have an owing balance on your 2021 tax return, you will have until April 30th, 2023 to pay any interest, so long as your taxable income is $75,000 or less.

CRB- Canada Recovery Benefit Reimbursement 

You will need to reimburse some or all of your benefit at tax time, if you earn more than $38,000 net income in 2021. 

There are 2 things to be mindful of:

• You are not required to reimburse more than what you received that year
• You will have to reimburse $0.50 of the CRB for every dollar of net income earned

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