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Reporting COVID-19 benefit repayments

Pre-test question

Select True or False

If an individual repaid COVID-19 benefits during the year, they may claim a deduction on their tax return.

  • True
  • False

Instructions

  1. Open the tax software
  2. Review the Background information and Required slips (tax slips, receipts, etc.)
  3. Provide all required information for the appropriate sections of the tax software
  4. Once completed, compare your results with the solution provided
  5. Afterwards, refer to the Takeaway points

Background information

Situation

Amy worked part time at Madame Chic Ltd. She also received Advanced Canada workers benefit payments.

In 2020, she had applied for and received the Canada Emergency Response Benefit (CERB). However, in 2024 Amy received notice that she was not eligible for $2,000 of the CERB received so she made a repayment for this amount to the CRA.

Identification information
Catégories Information
Name Amy Martin
Social insurance number (SIN) 000 000 000
Address 123 Main Street
City, Province X0X 0X0
Date of birth (DOB) October 9, 1990
Marital status Single
Dependant Son: Tyler Martin
DOB: January 1, 2014

Required slips

T4A – Statement of Pension, Retirement, Annuity, and Other Income slip (Canada Revenue Agency)

T4A – Statement of Pension, Retirement, Annuity, and Other Income
Text version of the above image

T4A – Statement of Pension, Retirement, Annuity, and Other Income
Protected B
Payer’s name: Canada Revenue Agency
Recipient’s name and address:
Last name: Martin
First name: Amy
123 Main Street
City, Province  X0X 0X0
Box 12: Social insurance number: 000 000 000
Other information (see page 2)
Box 201: 2,000.00

T4 – Statement of Remuneration Paid (Madame Chic Ltd.)

T4 – Statement of Remuneration Paid
Text version of the above image

T4 – Statement of Remuneration Paid
Protected B
Employer’s name: Madame Chic Ltd.
Employee’s name and address:
Last name: Martin
First name: Amy
123 Main Street
City, Province  X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 20,000.00
Box 16: Employee’s CPP contributions – see over: 888.94
Box 18: Employee’s EI premiums: 315.90
Box 24: EI insurable earnings: 20,000.00
Box 26: CPP/QPP pensionable earnings: 20,000.00
Box 45: Employer-offered dental benefits: 1

RC210 – Advanced Canada workers benefit (ACWB) statement

RC210 – Advanced Canada workers benefit (ACWB) statement
Text version of the above image

RC210 – Advanced Canada workers benefit (ACWB) statement
Issued by: Canada Revenue Agency
Martin, Amy
123 Main Street
City, Province  X0X 0X0
Social insurance number: 000 000 000
Box 10: Total Basic Advanced Canada workers benefit: 759.00

Review your results

Solution to Reporting COVID-19 benefit repayments.

Takeaway points

Steps to follow

  1. Review their background information and required slips
  2. In Interview setup, tick the box next to Pension income, other income and split pension income, COVID-19 benefits (T4A, T4FHSA, T4A(OAS), T4A(P), T4A-RCA, T4RSP, T4RIF, T1032) in the Pension and other income section
  3. Click T4 and employment income in the left-side menu, then click the + sign next to T4 income (earned in any province except Quebec) and enter the required information
  4. Click T4A, T4FHSA and pension income in the left-side menu, then click the + sign next to T4A – Pension, retirement, annuity, and other income (COVID-19 benefits) in the T4, T4FHSA and pension income section
  5. Select [201] Repayments of a federal COVID-19 financial assistance from the OTHER INFORMATION (COVID-19 benefits) drop-down menu to enter the amount from the individual's T4A slip
  6. Click Other information slips in the left-side menu, then click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500] to enter the information from the tax slip

The individual who makes a federal COVID-19 benefits repayment for amounts they received in a prior year may claim the repayment as a deduction. Since 2023, they must claim the amount on line 23210 of their tax return for the year the repayment was made. They can no longer claim an amount on the tax return for the year the benefit was received. The repayment is found in box 201 of their T4A slip.

If the individual received their CERB from Service Canada, the repayment amount is reported in box 30 of their T4E slip, along with any other EI repayment amounts.

In this case, Amy's deduction for the $2,000 repayment is claimed on line 23210 of her 2024 tax return.

For more information, refer to UFile instructions.

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