Impact on your taxes

All COVID-19 benefit amounts are taxable. You may have already paid tax at source or when you filed your taxes.

Once you make a repayment, you can claim a deduction to make sure you do not pay tax on any amounts you repaid.

Options to claim your repayments

If you made repayments before December 31, 2020, your repayments should have been subtracted from your total benefit amount on your 2020 T4A slip. You did not pay tax on amounts you repaid in 2020.

If you repay benefit amounts between January 1, 2021 and December 31, 2022, you may choose when and how to claim the deduction on your tax return.

You have the option to claim your repayments as a deduction in the same year you made the repayment or in the year you received the benefits. You may also split the deduction between your tax returns, as long as you do not deduct more than what you repaid.

Options to claim a repayment as a deduction

If you repaid benefit amounts before January 1, 2023, you may choose when and how to claim the deduction on your tax return.

You have the option to claim your repayments as a deduction in the year you made the repayment or in the year you received the benefits. You may also split the deduction between your tax returns, as long as you do not deduct more than what you repaid.

For benefit repayments made in 2022, you may:

Claim the deduction in 2022

Enter the amount from box 201 on your 2022 T4A slip on line 23210 of your 2022 tax return.

Claim the deduction in 2021

You can only claim a deduction on your 2021 tax return if you paid back a benefit amount you received in 2021.

Enter the amount from box 201 on your 2022 T4A slip on line 23210 of your 2021 tax return.

If you already filed your 2021 tax return, you can claim a repayment made in 2022 as a deduction in a previous tax year using Form T1B, Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year.

Claim the deduction in 2020

You can only claim a deduction on your 2020 tax return if you paid back a benefit amount you received in 2020.

Enter the amount from box 201 on your 2022 T4A slip on line 23200 of your 2020 tax return.

If you already filed your 2020 tax return, you can claim a repayment made in 2022 as a deduction in a previous tax year using Form T1B, Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year.

Split the deduction between your tax returns

You can only claim a deduction on your 2020 or 2021 tax return if you paid back a benefit amount you received in 2020. Make sure you do not deduct more than what you repaid.

For amounts you want to claim in:

2022 tax year

Enter the amount from box 201 on your 2022 T4A slip on line 23210 of your 2022 tax return.

Previous years

Already filed your previous year tax return:

Have not filed or changed your previous year tax return:

  • For amounts you want to claim in 2020 - enter the amount from box 201 on your 2022 T4A slip on line 23200 of your 2020 tax return.
  • For amounts you want to claim in 2021 – enter the amount from box 201 on your 2022 T4A slip on line 23210 of your 2021 tax return.

For benefit repayments made in 2021, you may:

Claim the deduction on your 2021 tax return

Enter the amount from box 201 on your 2021 T4A slip on line 23210 of your 2021 tax return.

Claim the deduction on your 2020 tax return

You can only claim a deduction on your 2020 tax return if you paid back a benefit amount you received in 2020.

Enter the amount from box 201 on your 2021 T4A slip on line 23200 of your 2020 tax return.

If you already filed your 2020 tax return, you can change your return to claim your repayment as a deduction on your 2020 tax return.

Split the deduction between your tax returns

You can only claim a deduction on your 2020 tax return if you paid back a benefit amount you received in 2020. Make sure you do not deduct more than what you repaid.

To claim a deduction for repayments on your:

  • 2020 taxes – enter the amount from box 201 on your 2021 T4A slip on line 23200 of your 2020 tax return.
  • 2021 taxes – enter the amount from box 201 on your 2021 T4A slip on line 23210 of your 2021 tax return.

If you already filed your 2020 tax return, you can make a request to change your return to claim your repayment as a deduction on your 2020 tax return.

If you repay a benefit amount after December 31, 2022, you can only claim a deduction in the year you make the repayment.

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