ARTICLE
8 February 2022

Reporting CERB And COVID-19 Assistance Programs On Your T4A Tax Slips

CM
Crowe MacKay LLP

Contributor

Since our first office opened in 1969, Crowe MacKay has striven to provide a range of financial services to a diverse array of businesses. Our business has grown to eight offices in Northern and Western Canada not only because we deliver consistently exceptional service, but because we attract employees at all levels who are passionate about their work. We are committed to making smart decisions that create lasting value.
With this being the second year of the pandemic in Canada Crowe MacKay's trusted advisors share an update on the repayment of CERB advances and reporting COVID-19 assistance programs on your T4A tax slips.
Canada Tax

With this being the second year of the pandemic in Canada Crowe MacKay's trusted advisors share an update on the repayment of CERB advances and reporting COVID-19 assistance programs on your T4A tax slips.

Repayment of CERB advances from Service Canada

Many Canadians who applied for the Canada Emergency Response Benefit (CERB) through Service Canada before June 14, 2020, received an advance payment of $2,000. Those who applied on or after June 14, 2020, did not receive an advance payment of $2,000.

To reconcile this advance payment, Employment and Social Development Canada (ESDC) applied it against other payment periods in June, July, and August of 2020. However, if recipients of the advance payment were not entitled to or did not collect CERB payments for at least 20 weeks, some or all of the advance payment remains as an outstanding balance owing.

Service Canada will be contacting Canadians who still have an outstanding balance of money owed from the advance payment, outlining their appeal rights and the process for repayment.

Reporting COVID-19 assistance

Government assistance received in the year such as the Canada Recovery Benefit (CRB), the Canada Recovery Sickness Benefit (CRSB) or the Canada Recovery Caregiving Benefit (CRCB) are taxable and must be reported on your 2021 income tax return. The Government should be issuing T4A tax slips to individuals who received assistance in 2021.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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