Claiming the deduction for a repayment of federal benefits related to COVID-19
On this page
- Test your knowledge
- Instructions
- Background information
- Slips required
- Solution
- Reminder of key points of the tax software
- Takeaway points
Test your knowledge
That's correct
If an individual repaid COVID-19 benefits that they received in a previous year, they can claim a deduction in the year they make the repayment.
Sorry, that's incorrect
If an individual repaid COVID-19 benefits that they received in a previous year, they can claim a deduction in the year they make the repayment.
Instructions
- Open the UFile CVITP software
- Review the background information and slips required (tax slips, receipts, etc.). Enter all the necessary information into the required section of the tax software
- Once completed, compare your results with the solution provided
- You don't have the same results? Consult the Reminder of key points of the tax software as needed
- Check out the Takeaway points at the end
| Category | Information |
|---|---|
| Family head | Heather Johnson |
| Social insurance number | 000 000 000 |
| Address | 123 rue Principale City QC X0X 0X0 |
| Telephone number | 450-444-4444 |
| Date of birth | June 30, 1985 |
| Marital Status | Single |
Details
- Heather worked at Services LMN
- This year she had to repay a federal COVID-19 benefit overpayment from a previous year
- She received advanced Canada workers benefit payments
- She is covered by the Quebec prescription drug insurance plan
- She is claiming the solidarity tax credit
Slips required
T4 – Statement of Remuneration Paid – Services LMN
Text version for the above image
T4 – Statement of Remuneration Paid
Protected B
Employer's name: Services LMN
Employee's name and address:
Last name: Johnson
First name: Heather
123 Principale
City QC X0X 0X0
Box 10: QC
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 20,000.00
Box 17: Employee's QPP contributions – see over: 973.50
Box 18: Employee's EI premiums: 236.00
Box 24: EI insurable earnings: 20,000.00
Box 26: CPP/QPP pensionable earnings: 20,000.00
Box 45: Employer-offered dental benefits: 1
Box 55: Employee's PPIP premiums – see over: 98.80
Box 56: PPIP insurable earnings: 20,000.00
RL-1 – Revenus d'emploi et revenus divers (Employment and other income) – Services LMN
Text version for the above image
Relevé 1 Revenus d'emploi et revenus divers
Box A– Revenus d'emploi: 20,000.00
Box B– Cotisation au RRQ: 973.50
Box C– Cotisation à l'assurance emploi: 236.00
Box E– Impôt du Québec retenu: 115.00
Box G– Salaire admissible au RRQ: 20,000.00
Box H– Cotisation au RQAP: 98.80
Box I– Salaire admissible au RQAP: 20,000.00
Numéro d'assurance sociale du particulier: 000 000 000
Nom et adresse de l'employeur ou du payeur: Services LMN
Nom de famille, prénom et adresse du particulier:
Johnson, Heather
123 Principale
City QC X0X 0X0
T4A – Statement of Pension, Retirement, Annuity, and Other Income – Canada Revenue Agency
Text version for 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: Johnson
First name: Heather
123 Principale
City QC X0X 0X0
Box 012: Social insurance number: 000 000 000
Box 201: 4,000.00
RL-1 – Revenus d'emploi et revenus divers (Employment and other income) – Canada Revenue Agency
Text version for the above image
Relevé 1 Revenus d'emploi et revenus divers
Code (case O) : RS
Renseignements complémentaires: O-9: 4,000.00
Numéro d'assurance sociale du particulier : 000 000 000
Nom et adresse de l'employeur ou du payeur : Canada Revenue Agency
Nom de famille, prénom et adresse du particulier :
Johnson, Heather
123 Principale
City QC X0X 0X0
RC210 – Advanced Canada workers benefit (ACWB) statement
Text version for the above image
RC210 – Advanced Canada workers benefit (ACWB) statement
Issued by: Canada Revenue Agency
Johnson, Heather
123 Principale
City QC X0X 0X0
Social insurance number: 000 000 000
Box 10: Total Basic Advanced Canada workers benefit: 759.00
RL-31 – Renseignements sur l'occupation d'un logement (Information about a leased dwelling)
Text version for the above image
Relevé 31 Renseignements sur l'occupation d'un logement
Code du relevé : R
Box A– Numéro de logement : 00000 – 00000 - 00000
Box B– Nombre de locataires ou de sous-locataires qui ont conclu le bail du logement visé à la case C : 01
Box C2– Numéro : 123
Box C3– Rue : Principale
Box C4– Ville, village ou municipalité : City
Box C5– Code postal : X0X 0X0
Nom de famille, prénom et adresse du locataire ou du sous-locataire :
Johnson, Heather
123 Principale
City QC X0X 0X0
Solution
Reminder of key points of the tax software
Note:
To access complete instructions on the various steps of entering data into the software, click on the title of each section below.
-
Heather's interview
- Click Revenu Québec questions in the left-side menu
- Select Yes for the question Are you eligible for the Quebec amount for a person living alone?
- Select Yes for the question Do you wish to apply for the Quebec solidarity tax credit?
Employment income – T4 and RL-1
- Click T4 and employment income in the left-side menu
- Click the + sign next to T4 and RL-1 (Relevé 1) income earned in Quebec with QPP contributions
- Enter the amounts from the individual's T4 and RL-1 slips into the corresponding fields
Deduction for the repayment of the federal benefits related to COVID-19 – T4A and RL-1
- Click Interview setup in the left-side menu
- In the Pension and other income section, 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)
- Click T4A, T4FHSA and pension income in the left-side menu
- Click the + sign next to T4A – Pension, retirement, annuity, and other income (COVID-19 benefits)
- Under OTHER INFORMATION (COVID-19 benefits), select field [201] Repayments of a federal COVID-19 financial assistance (Box O code O-9) and enter the amount from the individual's T4A and RL-1 slips
Advanced Canada workers benefit
- Click Other information slips in the left-side menu
- Click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500]
- Enter the amount from the individual's RC210 slip
Additional steps to consider
Ensure that you have:
- answered the questions related to the Quebec prescription drug insurance plan
- answered the questions related to the solidarity tax credit
Takeaway points
Deduction for a repayment of COVID-19 benefits
- An individual who repays federal COVID-19 benefits for amounts received in a previous year can claim the repayment as a deduction
- The repayment is found in box 201 of the T4A slip and in box O-9 of the RL-1 slip