![]() Filing on time avoids having your recovery benefit payments stopped while we validate your eligibility. The CRA uses information from both your 2019 and 2020 returns to confirm your eligibility to receive these benefits. It is important to file on time if you receive COVID-19 recovery benefits such as the CRB, CRCB, or CRSB. There may be other impacts to filing your tax return that are specific to the COVID-19 benefit you received, or if you are a resident of Quebec. The loan itself is not taxable, however, any part of the loan that is forgivable is taxable in the year in which the loan is received. You may also have received a government loan. Government assistance income is taxable and will either be included in business income or, if you elect, will reduce your business expenses. You are responsible for reporting the amount of assistance received through these programs when you file your income tax return. When you complete your personal income tax return, you may need to pay more (or less), depending on how much income you earned in 2020.Īlso, you may have received federal, provincial, or territorial government program assistance such as the Canada Emergency Wage Subsidy (CEWS), the Temporary 10% wage subsidy or the Canada Emergency Rent Subsidy (CERS). However, this may not be all the tax you need to pay. ![]() If you received the CRB, CRSB, or CRCB, 10% tax was withheld at source.If you received the CERB or CESB, no tax was withheld when payments were issued, and you may owe tax when filing your 2020 tax return.This will depend on your personal circumstances, and the type of COVID-19 benefits you received: In addition, you may owe tax when filing your return. These benefit payments are not considered self-employment income. Residents of Quebec will receive both a T4A and RL-1 slip. You can view tax slips online as of February 8, 2021 in My Account. You will receive a T4A (for benefits issued by the CRA) and/or a T4E (for benefits issued by Service Canada) tax slip in the mail with the information you need for your return. If you received the Canada Emergency Response Benefit (CERB), Canada Emergency Student Benefit (CESB), Canada Recovery Benefit (CRB), Canada Recovery Sickness Benefit (CRSB), or Canada Recovery Caregiving Benefit (CRCB) payments, these are considered taxable income, and you will have to enter the total of the amounts you received on your return. The impact of COVID-19 benefits on your return The CRA’s Get Ready page has information on online filing, deadlines, and other helpful links. The CRA also encourages you to sign up for My Account and My Business Account ahead of time, and gather all your information for filing your return. Using the CRA’s digital services is the fastest and easiest way to view and manage your tax and benefit information. For this reason, the CRA encourages you to sign up for direct deposit and to file your income tax and benefit return online to get any refund for which you may be eligible faster and avoid delays. Sign up for direct deposit and file online to reduce impacts and delaysĭue to COVID-19, it may take the CRA 10 to 12 weeks to process paper returns. To get ready for a tax filing season like no other, we’ve put together helpful tips and information for self-employed individuals. The Canada Revenue Agency (CRA) understands you may have faced many challenges this past year, and we’re focused on supporting you this tax season. The COVID-19 pandemic is affecting everyone, including self-employed individuals.
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