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Canada Recovery Sickness Benefit (CRSB)

Impact on your taxes

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How CRSB is taxed

After the CRA withheld a 10% tax at source, the actual payment you received was $450 for each 1-week period.

How your payment was taxed at source

  • $500 (CRSB gross amount)
  • minus   $50 (10% tax withheld at source)
  • equals $450 (amount you received per period)

Expect an adjustment at tax time

The 10% tax you paid at source may not be all the tax you need to pay. You may need to pay more (or less) depending on your personal tax situation.

What to do at tax time

The CRA provided a T4A tax information slip at tax time for the COVID-19 benefit amounts you received from the CRA in 2021. Your T4A slip will be available in CRA My Account.

The CRSB amounts are taxable. You must report the CRSB amounts as income when you file your personal income tax return.

Verify your tax slips

All COVID-19 benefits you received from the CRA in 2021 will be on one T4A slip. Quebec residents will get both a T4A slip and a RL-1 slip.

If you received more than one benefit or made repayments, make sure the amounts are correct before you report them on your tax return.

For details: Verify COVID-19 amounts on your T4A

Report your T4A amounts on your tax return

Your CRSB amount is shown in box 203 on your 2021 T4A slip.

Find T4A COVID-19 benefit box numbers
COVID-19 income sources
Box Description Tags

If you received more than one COVID-19 benefit, add up each benefit payment you received from your T4A slip.

Enter the total amount you received on line 13000 of your tax return. If you’re filing a paper return, specify the type of income you’re reporting. Attach a list if you received more than one benefit.

Benefit repayments on your T4A

If you received a COVID-19 benefit from CRA in 2020, any repayments you made in 2021 will display in box 201 on your 2021 T4A slip.

Box 201 – Repayments of benefits in 2021
COVID-19 income sources
Box Description Tags

If you have box 201 on your 2021 T4A slip, find options to claim a deduction.

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 2021 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 are taxed or not taxed in the same way your income was taxed during the timeframe 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, 2020, 2021, 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 2021 were tax exempt, you may be able to get some or all of that tax back by filing a 2021 tax return.

If you are not sure if your income is tax exempt, or need more details:

Taxes and benefits for Indigenous peoples

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 2021 balance owing. For each additional month you are late in filing your tax return, an extra 1% is added (up to a maximum of 12 months).

Interest relief on 2020 taxes ended on April 30, 2022

The CRA automatically applied interest relief on your 2020 taxes owing if you had a taxable income of $75,000 or less in 2020, and received at least one COVID-19 benefit.

You must have filed your 2020 tax return to get this interest relief until April 30, 2022.

Late-filing penalty charges on 2020 taxes still apply since they are not part of this interest relief.

For details: COVID-19 related interest relief on 2020 taxes

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