CRB - Canada Recovery Benefit - Details & Discussion

[Anna Michele]

I suppose I could but they'd likely be deposited long before I do the taxes

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[tjthemanto]

I suppose I could but they'd likely be deposited long before I do the taxes

Yes GST/HST and OTB deposits go from July to
June.

So you will already get them up to June 30, 2021 based on your 2019 tax return. Need not even file 2020 tax return to get them for next 6 months.

July, 2021 to June, 2022 - OTB, HST payments will be based on 2020 tax return.

[tjthemanto]

I think the government will provide a T4 type of slip in February, 2021 for all these CERB and CRB benefits, which will show you what should be included for 2020 calendar year.

I know for other payments like OAS/GIS and CPP you get T4 type slips in February for previous year. This should be no different.

I think the maximum you could have got from CERB is 7 payments, so $ 14,000.

Just the basic personal amount in 2020 is
$ 13,300. So you pay no income tax on the first
$ 13,300 you make. With other tax credits, exemptions, rebates you can easily stretch that above $ 15,000.

If you do RRSP you can even get a lot more tax exempt.

So you should be fine, won't owe taxes to CRA.

CRB unlike CERB already has 10% withholding tax, so you should be fine there too, if you are getting CRB now, after CERB got over.

[tjthemanto]

CRA & COVID-19

(How to Report Covid related benefits on your Tax return.)

T4A slips for 2020 tax year:

You will get a T4A slip from the CRA, if you received any of the COVID-19 emergency or recovery benefits from the CRA before December 31, 2020:

• Canada Emergency Response Benefit (CERB) with the CRA
• Canada Emergency Student Benefit (CERB)
• Canada Recovery Benefit (CRB)
• Canada Recovery Caregiving Benefit (CRCB)
• Canada Recovery Sickness Benefit (CRSB)

Quebec residents will get both a T4A and RL-1 slip.
The CRA will provide T4A slips starting in January 2021. You should receive your T4A slip before March 10, 2021.
The COVID-19 benefit payment amounts on your T4A slip are taxable and must be reported as income on line 13000 of your 2020 income tax and benefit return.
You did not receive a T4A slip

If you received COVID-19 benefit payments in 2020, you should receive your T4A slip before March 10, 2021. You may also get your T4A information from CRA My Account.
After March 10, 2021, if you still do not have your T4A slip information, contact the CRA.
Situations where you would not get a T4A slip:

• If you applied for the CERB with Service Canada or any Employment Insurance (EI) benefit payments, you will receive a T4E slip.
• If your employer received the Canada Emergency Wage Subsidy (CEWS) to cover part of your wages, the income you earned will appear on your regular T4 slip.

Issues with your T4A slip

Each COVID-19 benefit will have its own box number (Box 197 to 204) on your T4A slip. If you received more than one benefit with the CRA in 2020, check that each amount you received or repaid is correct.
To confirm the COVID-19 benefit amounts you received, you can review “COVID-19 Support Payment Application Details” in CRA My Account.
Call the CRA right away if:

• Your T4A slip shows incorrect amounts
• You repaid benefit amounts before December 31, 2020, but the repayments are not reflected
• Your T4A slip shows incorrect personal information
• You did not apply for a COVID-19 benefit, but received a T4A slip

Telephone number: 1-800-959-8281(opens up phone application)
How to report T4A amounts on your tax return

You will need to enter all COVID-19 benefit amounts you received (Box 197 to 204) from your T4A slip and provide the total amount on line 13000 - Other income of your 2020 income tax and benefit return.
If you received a CRB, CRCB or CRSB, the CRA withheld a 10% tax at source on each payment. In addition to reporting the amounts on line 13000, you need to report the income tax deducted.
You can find the income tax deducted at source in Box 022 of your T4A slip. Enter this amount on line 43700 - Total income tax deducted on your 2020 income tax .

[tjthemanto]

The Covid government related T4A slip will be like this:

The T4A will have specific boxes for the various benefits which needs to be reported on line 13000 - Other Income in the tax return.

• Box 197 – Canada Emergency Response Benefit (CERB)
• Box 198 – Canada Emergency Student Benefit (CESB)
• Box 199 – Canada Emergency Student Benefit (CESB) for eligible students with disabilities or those with children or other dependents
• Box 200 – Provincial/Territorial COVID-19 financial assistance payments
• Box 202 – Canada Recovery Benefit (CRB)
• Box 203 – Canada Recovery Sickness Benefit (CRSB)
• Box 204 – Canada Recovery Caregiving Benefit (CRCB)

[tjthemanto]

Check your CERB, CRB - T4A slips carefully. To see if it reflects the right amount or not.