CRA sends out forms to those who received CERB, CRB, CRCB and CRSB benefits
The Canada Revenue Agency (CRA) has started distributing T4A slips to those who received temporary emergency benefits from the government so they can file their taxes for 2020.
The slip is being delivered to people who benefited from the:
- Canada Emergency Response Benefit (CERB)
- Canada Emergency Student Benefit (CESB)
- Canada Recovery Benefit (CRB)
- Canada Recovery Sickness Benefit (CRSB)
- Canada Recovery Caregiving Benefit (CRCB)
It’s important to know the CERB, CRB, CRCB, CRSB benefits are taxable income, tweeted accountant Neal Winokur.
“If you received CERB and/or the new benefits replacing CERB - you will receive a T4A slip and must include this in your 2020 tax return, and depending on how much other income you have, you may owe some tax.”
Late last year, the CRA encouraged any individuals who mistakenly received multiple payments or payments that they did not apply for to repay the CERB payments by the end of the year to avoid any 2021 tax issues.
However, Prime Minister Justin Trudeau later said Canadians should not be worried about CERB repayments over Christmas after the CRA sent out “educational” letters to nearly 500,000 CERB recipients asking for more information about their income eligibility requirement for the program.
The T4A is virtually identical to the T4 slips Canadians are used to receiving from their employers. However, rather than employment income, T4A provides the amounts of COVID-19 benefits a taxpayer received from the CRA in 2020.
T4As will be sent out in waves. Canadians who received relief payments but do not get a T4A slip by March 10 may be able to get a copy by using the My Account for individuals service or contacting the CRA directly, says the government.
Residents of Quebec will receive both a T4A and a RL-1 slip, according to the CRA.