Reporting COVID-19 benefit repayments
Reporting COVID-19 benefit repayments
Pre-test question
That's correct
If an individual repaid COVID-19 benefits during the year, they can claim a deduction to ensure they do not pay tax on any amounts they repaid.
Sorry, that is incorrect
If an individual repaid COVID-19 benefits during the year, they can claim a deduction to ensure they do not pay tax on any amounts they repaid.
Instructions
- Open the tax software
- Review the Background information and Required slips (tax slips, receipts, etc.)
- Provide all required information for the appropriate sections of the tax software
- Once completed, compare your results with the solution provided
- Afterwards, refer to the Takeaway points
Background information
Situation
Amy worked part time at Madame Chic Ltd.
In 2020, she had applied for and received the Canada Emergency Response Benefit (CERB). However, in 2023 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
| 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)
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.)
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
Review your results
Solution to Reporting COVID-19 benefit repayments.
Takeaway points
Steps to follow
- Review their background information and required slips
- In Interview setup, tick the box next to Pension income, other income and split pension income, COVID-19 benefits (T4A, T4A(OAS), T4A(P), T4A-RCA, T4RSP, T4RIF, T1032) in the Pension section
- 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
- Click T4A 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 Pension income section
- 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
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. As of 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 2023 tax return.
For more information, refer to UFile instructions.
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