How COVID-19 relief measures might affect your taxes this year

Some of the federal emergency benefits for individuals and families were tax-free. You won’t be taxed on the following amounts:

• An extra Canada Child Benefit (CCB) payment

• An extra payment because of a disability

• An extra payment of the GST/HST credit

• An extra payment of the Old Age Security (OAS) pension

The CERB provided temporary income support to employed and self-employed Canadians who lost their income due to COVID-19. This includes employed, self-employed, wage earners, and contract workers. The CERB provided a payment of $2,000 per month for 7 months.

How will it affect my taxes?

You’ll need to pay tax on your CERB payments when you file your return. This benefit will be included in your income for 2020, so it might make your total income higher than last year. This means you could find yourself in a different tax bracket and you could have to pay more tax this year than you did last year.

If you received your CERB payments from the CRA, you’ll find this amount in box 197 of your T4A slip. If you received your CERB payments from Service Canada, this amount will be included with your regular Employment Insurance (EI) benefits in box 14 on your T4E slip. If you’re a resident of Québec, you’ll find this amount in box O of your RL-1 slip. You’ll need to report these amounts when you prepare and file your return.

If you received CERB payments but later found out you weren’t eligible for the benefit, you’ll need to return or repay the amount you were given. If you repaid your CERB amounts before December 31, 2020, you won’t need to pay tax on them when you file your return.

In February 2021, the Government of Canada announced that fewer self-employed Canadians need to repay the CERB amounts they received. Check out this blog on what you need to know about repaying COVID-19 benefits to learn more.

Many Canadians received EI benefits once their CERB payments ended. To make it easier for more Canadians to access their benefits, the federal government made changes to the EI program, including the eligibility requirements.

How will it affect my taxes?

Depending on your net income for the year, you might need to repay some of your EI benefits. You’ll receive a T4E slip showing the employment insurance and other benefits you received or repaid this year, or a T4E(Q) slip if you’re a resident of Québec. This slip will tell you if you need to repay a percentage of your income.

Keep in mind, EI benefits are also subject to a clawback, meaning that if your net income is more than $67,750, you’ll need to repay a portion of your EI benefits to the CRA.

The CESB provided temporary income support to post-secondary students and recent graduates who couldn’t find work due to COVID-19. The CESB provided $1,250 per month for 4 months. Students who had a disability or dependants could also get an extra $750 per month.

How will it affect my taxes?

You’ll need to pay tax on your CESB payments when you file your return. This benefit will be included in your income for 2020, so it might make your total income higher than last year. This means you could find yourself in a different tax bracket and you could have to pay more tax this year than you did last year.

You’ll find this amount in box 198/199 of your T4A slip. If you’re a resident of Québec, you’ll find this amount in box O of your RL-1 slip.

If you received CESB payments but later found out you weren’t eligible for the benefit, you’ll need to return or repay the amount you were given. If you repaid your CESB amounts before December 31, 2020, you won’t need to pay tax on them when you file your return. Check out this blog on what you need to know about repaying COVID-19 benefits to learn more.

The CRB provided income support to employed or self-employed Canadians who didn’t qualify for Employment Insurance (EI) benefits. The CRB provided a payment of $1,000 every 2 weeks, for up to 26 weeks. This benefit is still open for applications.

How will it affect my taxes?

You’ll find your CRB amount in box 202 of your T4A slip. If you’re a resident of Québec, you’ll find this amount in box O of your RL-1 slip.

This benefit was subject to 10% tax withholding, meaning 10% tax was sent to the CRA before you received it. However, this might not be all the tax you need to pay. Depending on your situation, you might need to pay more (or less) tax on the CRB you received.

This means 10% was sent to the CRA before you received it, which reduces the amount of taxes you owe.

The CRB is also subject to a clawback, meaning that if your net income is more than $38,000, you’ll need to repay a portion of your benefit to the CRA.

You’ll find this amount in box 202 of your T4A slip. If you’re a resident of Québec, you’ll find this amount in box O of your RL-1 slip. You’ll need to report this amount when you prepare and file your return.

The CRSB provided income support to employed or self-employed Canadians who couldn’t work because they were sick or needed to self-isolate, or because they have an underlying health condition that put them at greater risk of getting COVID-19. The CRSB provides $500 per week. This benefit is still open for applications.

How will it affect my taxes?

This benefit was subject to 10% tax withholding, meaning 10% of the tax was sent to the CRA before you received it. However, this might not be all the tax you need to pay. Depending on your situation, you might need to pay more (or less) tax on the CRSB you received.

You’ll find this amount in box 203 of your T4A slip. If you’re a resident of Québec, you’ll find this amount in box O of your RL-1 slip. You’ll need to report this amount when you prepare and file your return.

The CRCB provided income support to employed or self-employed Canadians who couldn’t work because they needed to care for a family member. Their family member might have needed supervision if they were under the age of 12 and their school was closed, or because they were sick and needed to self-isolate due to COVID-19. The CRCB provides $500 per week. This benefit is still open for applications.

How will it affect my taxes?

This benefit was subject to 10% tax withholding, meaning 10% of the tax was sent to the CRA before you received it. However, this might not be all the tax you need to pay. Depending on your situation, you might need to pay more (or less) tax on the CRCB you received.

You’ll find this amount in box 204 of your T4A slip. If you’re a resident of Québec, you’ll find this amount in box O of your RL-1 slip. You’ll need to report this amount when you prepare and file your return.

If you are an employer who saw a drop in revenue due to COVID-19, you might be eligible to claim the CEWS which covers part of your employee wages, retroactive to March 15. The subsidy amount you can claim depends on the amount your revenue has dropped. This subsidy is available until June 2021.

How will it affect my taxes?

The CEWS is taxable must be included on your tax return.

If you are a business who saw a drop in revenue due to COVID-19, you might be eligible to claim the CERS which covers part of your commercial rent or property expenses from September 27, 2020 to June 2021.

How will it affect my taxes?

The CERS is taxable must be included on your tax return.

The Fish Harvester Benefit provided income support to self-employed fish harvesters, covering up to $10,614 of their lost income. The Fish Harvester Grant gave up to $10,000 to self-employed fish harvesters who have a valid commercial fishing license.

How will it affect my taxes?

The Fish Harvester Benefit and Grant will be included in your yearly income, and so both amounts will be taxed at your normal tax rate. Because these amounts are considered income, they might change your tax bracket.

You’ll find these amounts on your T4 slip, or your RL-1 slip if you’re a resident of Québec.

This relief measure provided income support to employed and self-employed Albertans who couldn’t work because they needed to self-isolate, or because they needed to care for a dependant who was self-isolating. Eligible workers received a one-time payment of $1,146.

How will it affect my taxes?

You’ll need to pay tax on the Emergency Isolation Support when you file your return. This support payment will be included in your income for 2020, so it might make your total income higher than last year. This means you could find yourself in a different tax bracket and you could have to pay more tax this year than you did last year.

You’ll find this amount in box 200 of your T4A slip. You’ll need to report this amount when you prepare and file your return.

This is a one-time payment of $561 per child for families who paid for childcare so that they could continue working during the pandemic and whose annual household income is less than $100,000. Applications are open on the provincial government website until March 31, 2021. Keep in mind, if you incurred your childcare expenses while collecting CERB or EI benefits, you won’t be eligible for this benefit.

How will it affect my taxes?

This benefit is tax-free, but the amount you receive for the Working Parents Benefit will lower the amount you can claim for childcare expenses on your 2020 return. If you’ve already filed your 2020 return but want to apply for this benefit, you’ll need to request a change to your return.

This is a one-time payment of $1,200 for eligible frontline workers. If you work in public healthcare, social services, or education, you’ll receive this benefit automatically. If you work in the private sector or in a First Nations community, your employer has to apply for this benefit on your behalf. Applications are open on the provincial government website until March 19, 2021.

How will it affect my taxes?

These support payments will be subject to payroll deductions (including tax and EI deductions) if you receive them. You’ll find this amount included with your regular salary on your T4 slip. You’ll need to report this amount when you prepare and file your return.

Keep in mind that these support payments will be included in your income for 2020, so they might make your total income higher than last year. This means you could find yourself in a different tax bracket and you could have to pay more tax this year than you did last year.

Some of the emergency benefits for individuals and families offered in British Columbia were tax-free. You won’t be taxed on the following amounts:

• B.C. Emergency Benefit for Workers

• B.C. Recovery Benefit

• An extra payment of the B.C. Low-Income Climate Action credit

• A temporary increase of the B.C. Seniors Supplement

Between March 15 and July 4, 2020, eligible frontline workers (such as nurses or other hospital staff) were paid an extra $4/hour for the straight-time and overtime hours they worked. This amount was paid as a lump sum.

How will it affect my taxes?

These support payments were subject to payroll deductions (including tax and EI deductions) when you received them. You’ll find this amount included with your regular salary on your T4 slip. You’ll need to report this amount when you prepare and file your return.

Keep in mind that these support payments will be included in your income for 2020, so they might make your total income higher than last year. This means you could find yourself in a different tax bracket and you could have to pay more tax this year than you did last year.

The Disability Economic Support Program was a tax-free benefit. If you received the one-time payment of $200 in June 2020, you won’t be taxed on this amount.

Eligible frontline workers (such as staff at supermarkets or gas stations) who worked at least 200 hours between March 20, 2020 and May 29, 2020 received a one-time payment of $1,515 before taxes.

How will it affect my taxes?

This benefit was subject to 10% tax withholding. This means 10% was sent to the CRA before you received it, which reduces the amount of taxes you owe.

You’ll find this amount in box 200 of your T4A slip. You’ll need to report this amount when you prepare and file your return.

Some of the emergency benefits offered to individuals and families in Ontario were tax-free. You won’t be taxed on the following amounts:

• Support for Families program

• Support for Learners program

Between April 4 and August 13, 2020, eligible frontline workers (such as nurses or other hospital staff) were paid an extra $4/hour by their employer. This amount could have been paid as a lump sum or added to their hourly wages.

How will it affect my taxes?

These support payments were subject to payroll deductions (including tax and EI deductions) when you received them. You’ll find this amount included with your regular salary on your T4 slip. You’ll need to report this amount when you prepare and file your return.

Keep in mind that these support payments will be included in your income for 2020, so they might make your total income higher than last year. This means you could find yourself in a different tax bracket and you could have to pay more tax this year than you did last year.

Some of the emergency benefits offered to individuals and families in Prince Edward Island were tax-free. You won’t be taxed on the following amounts:

• Temporary Rental Assistance Benefit

• Employee Gift Card Program

The COVID-19 Income Support Program provided up to $750 for workers who were laid off due to COVID-19, $250/week for workers who kept their jobs but with reduced hours, and up to $500/week for self-employed workers.

How will it affect my taxes?

You’ll need to pay tax on any support payments you received when you file your return. This benefit will be included in your income for 2020, so it might make your total income higher than last year. This means you could find yourself in a different tax bracket and you could have to pay more tax this year than you did last year.

You’ll find this amount in box 200 of your T4A slip. You’ll need to report this amount when you prepare and file your return.

Eligible essential workers who earned less than $3,000/month (or $18.75/hour) could receive a one-time payment of $1,000. Their employer needed to apply for this benefit on their behalf.

How will it affect my taxes?

This support payment was subject to payroll deductions (including tax and EI deductions) when you received it. You’ll find this amount included with your regular salary on your T4 slip. You’ll need to report this amount when you prepare and file your return.

Keep in mind that these support payments will be included in your income for 2020, so they might make your total income higher than last year. This means you could find yourself in a different tax bracket and you could have to pay more tax this year than you did last year.

This program provided temporary income support to essential workers in Québec. If you qualified, you earned $100 per week for up to 16 weeks in addition to your regular wages.

How will it affect my taxes?

You’ll need to pay tax on any IPREW payments you received when you file your return. This benefit will be included in your income for 2020, so it might make your total income higher than last year. This means you could find yourself in a different tax bracket and you could have to pay more tax this year than you did last year.

This benefit will be included in your yearly income, so it’ll be taxed at the regular tax rate. You’ll find your IPREW amount in box O-5 on your RL-1 slip.

This program provided temporary income support to farmers in Québec. If you qualified, you earned $100 per week for up to 16 weeks in addition to your regular wages.

How will it affect my taxes?

This benefit will be included in your yearly income, so it’ll be taxed at the regular tax rate. You’ll find this amount in box O-5 on your RL-1 slip.

This emergency benefit provided temporary income support to employed or self-employed individuals in Saskatchewan who couldn’t work because they needed to self-isolate due to COVID-19. Eligible workers received $450/week for a maximum of 2 weeks.

How will it affect my taxes?

You’ll need to pay tax on the support payments you received when you file your return. This benefit will be included in your income for 2020, so it might make your total income higher than last year. This means you could find yourself in a different tax bracket and you could have to pay more tax this year than you did last year.

You’ll find this amount in box 200 of your T4A slip. You’ll need to report this amount when you prepare and file your return.

Between March 15 and July 4, 2020, eligible home care workers (such as attendant care workers, cooks, or janitors) received an extra $400/month if their regular wages were less than $24/hour. Between November 19, 2020 and January 13, 2021, eligible home care workers received an extra $400/month, no matter what their regular wages were.

How will it affect my taxes?

You’ll need to pay tax on the Temporary Wage Supplement when you file your return. This benefit will be included in your income for 2020, so it might make your total income higher than last year. This means you could find yourself in a different tax bracket and you could have to pay more tax this year than you did last year.

You’ll find this amount in box 200 of your T4A slip. You’ll need to report this amount when you prepare and file your return.