How does COVID-19 Tax Benefits impact your 2020 T1 personal taxes?

COVID-19 Tax Benefits

During 2020, you may have received government COVID-19 payments such as the Canada Emergency Response Benefit (CERB), Canada Emergency Student Benefit (CESB), Canada Recovery Benefit (CRB), Canada Recovery Caregiving Benefit (CRCB), and Canada Recovery Sickness Benefit (CRSB). These amounts are taxable and you will have received a T4A tax slip.

If you are self-employed, you may have received government COVID-19 assistance for your business, such as the Canada Emergency Wage Subsidy (CEWS). Generally, you must either include these amounts in business income or reduce your expenses by the amounts that you received. You may also have received a government loan. The loan itself is not taxable, but you must include in your business income any portion of the loan that is forgivable.

If you received the Canada Recovery Benefit (CRB), you may have to repay all or part of it, if your net income after certain adjustments is more than $38,000.

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