As tax season approaches, Canadians who received the Canada Emergency Response Benefit (CERB) last year may be wondering how to report these payments on their income tax return.
CERB was a federal program introduced by the Canadian government in response to the COVID-19 pandemic. It provided financial assistance to eligible individuals who lost their jobs or experienced a significant reduction in income due to the pandemic.
To report CERB payments on your income tax return, you’ll need to know the total amount of CERB payments you received in 2022.
You can find this information on your CRA My Account, or on the T4A tax slip that you received from the CRA. The T4A slip should be mailed to you by the end of February, and it will show the total amount of CERB payments you received in the following boxes:
- Box 200 is Provincial/Territorial COVID-19 Financial Assistance Payments which should be entered on Line 13000
- Box 201 is amounts of COVID-19 Financial Assistance that has been repaid (due to mistakenly receiving the benefits) which should be entered on Line 23210 for amounts repaid on federal COVID-19 benefit and Line 23200 for amounts repaid on provincial/territorial benefits
- Box 202 is for the Canada Recovery Benefit which should be entered on Line 13000
- Box 203 is for the Canada Recovery Sickness Benefit which should be entered on Line 13000
- Box 204 is for the Canada Recovery Caregiver Benefit which should be entered on Line 13000
- Box 211 is for the Canada Worker Lockdown Benefit which should be entered on Line 13000
Amounts in Box 201 can be claimed as a deduction. You can:
- Claim them on your 2022 tax return - enter the amount on Line 23210 even if the slip says to enter it on 23200; repayments for other benefits will still be reported in 23200
- Claim them on your return for the year the benefits were received (either 2020 or 2021) - File Form T1B - Request To Deduct Federal COVID-19 Benefits Repayment In Prior Year with your 2022 Income Tax Return; this will prevent taxpayers from having to request a separate reassessment on their 2020 or 2021 returns
- Split them between your 2022 return and your return for the year the benefits were received
It's important to note that CERB payments (Box 200) are taxable, which means that you’ll have to pay taxes on the amount you received. Unlike most other social assistance payments, the government did not withhold any taxes from CERB payments, so you may owe taxes on this income when you file your tax return. If you received other types of COVID-19 benefits, such as the Canada Recovery Benefit (CRB) or the Canada Recovery Caregiving Benefit (CRCB), you may owe taxes on these payments as well.
If you are concerned about how much you may owe in taxes, or if you need help filing your tax return, it's important to seek professional advice. A tax professional or accountant can help you understand your tax obligations and ensure that you file your return correctly. Contact us today for more information.
