Impact on your taxes
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How CRSB is taxed
After the CRA withholds a 10% tax at source, the actual payment you get is $450 per 1-week period.
But the 10% tax may not be all the tax you need to pay. You may need to pay more (or less) depending upon your personal tax situation.
What to do at tax time
The CRA will provide you with a T4A tax information slip at tax time for the CRA-administered COVID-19 benefit amounts you received in 2020. Your T4A slip will also be available in CRA My Account.
You must report your CRSB payments that you receive as income when you file your personal income tax return.
Verify your tax slips
All COVID-19 benefits that you received from the CRA in 2020 will be shown on one T4A slip, or on your RL-1 if you live in Quebec.
If you applied for multiple benefits or made repayments, verify that the amounts on your T4A slip are correct before you report them in your tax return.
Provincial or territorial COVID-19 financial assistance payments will be on separate T4A slips.
Report your T4A amounts on your tax return
If you received a T4A slip, your CRSB amount is shown in box 203. Other COVID-19 benefit amounts are in boxes 197 to 204:
In the space to the left of line 13000, specify the type of income you’re reporting. If you’re filing a paper return and received more than one benefit, attach a list of all the benefits you received.
Report the income tax deducted at source
If you received the CRB, CRCB or CRSB, the CRA withheld a 10% tax at source on each payment. Enter the income tax deducted from box 022 on line 43700 on your 2020 tax return.
For Quebec residents, the 10% tax withheld at source is split:
If your income is tax exempt
If your income is eligible for tax exemption under section 87 of the Indian Act, your CRSB payments may be tax exempt. Your CRSB payments will be taxed (or not) in the same way as the income that entitled you to the benefit.
- If all your income was tax exempt during the time you earned the $5,000 income requirement (in 2019 or the last 12 months), then the benefit is also tax exempt.
- If your income during that time was not fully tax exempt, you may have some tax to pay.
All CRSB payments had a 10% tax was withheld at source. If your CRSB payments in 2020 were tax exempt, you may be able to get some or all of that tax back by filing a 2020 tax return.
If you are not sure if your income is tax exempt, or need more details:
Penalties and interest
File your tax return before the due date to avoid late-filing penalties and any disruption in receiving your other benefits and credits.
The late-filing penalty is 5% of your 2020 balance owing, plus an additional 1% for each month that you are late (up to a maximum of 12 months).
Interest relief on 2020 taxes owing will be given to people who have a taxable income of $75,000 or less in 2020, and received at least one of the COVID-19 benefits, such as the CRSB.
Late-filing penalty charges still apply and are not part of this interest relief.
You must file your 2020 tax return to qualify for interest relief.
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