The CRA Is Reminding Students That COVID-19 Benefits Must Be Included On Their Tax Returns
Ahead of tax time, the Canada Revenue Agency (CRA) is reminding students that all COVID-19 benefits are taxable.
In a new tweet, the federal agency urged any students who claimed benefits in the last year to “make sure you enter the total amounts received on your tax return.”
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Reminder for students! If you received #COVID19 benefits, make sure you enter the total amounts received on your ta… https://t.co/f3Ona70Jbj— Canada Revenue Agency (@Canada Revenue Agency) 1611768630.0
This includes the Canada Emergency Response Benefit (CERB) as well as the Canada Emergency Student Benefit (CESB).
New benefits, like the Canada Recovery Benefit (CRB), the Canada Recovery Sickness Benefit (CRSB) and the Canada Recovery Caregiving Benefit (CRCB) are also taxable.
Although most of these payments had tax withheld at source, all Canadians are still required to include them come tax time.
Since last year, experts and banks have been urging claimants to get prepared for April as some people may end up unexpectedly owing money.
Federal officials have admitted that tax time is going to be “incredibly complicated” this year, thanks in part to confusion about COVID-19 benefits and their tax implications.
For those who are confused about their taxes in 2021, the CRA is offering free support to eligible students.