COVID-19 Benefits Will Impact Your Taxes This Year & The CRA Explained How (VIDEO)

Now that tax season is in full swing, the Canada Revenue Agency has shared a video explaining exactly how COVID-19 benefits will impact your taxes.

In a minute-long clip shared to Facebook, the federal agency broke-down everything you need to know about paying taxes this year if you claimed any of Canada’s pandemic support payments.

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Sage, an expert from the CRA, begins by acknowledging that these are “trying times,” and that everyone is doing their best to get through this pretty complex period.

He goes on to explain that those who claimed any of Canada’s COVID-19 support benefits will need to declare the money as taxable income.

This includes the Canada Emergency Response Benefit (CERB) and the Canada Emergency Student Benefit (CESB), as well as the three new recovery benefits introduced in October 2020.

The expert acknowledges that tax was withheld at source for some payments, but notes that you may still owe money depending on your total taxable income.

“If you do need to pay, check out the CRA’s payment page to see all your options,” Sage says.

He also notes that those struggling with owed amounts can contact the agency directly to discuss potential payment options.

Government officials admitted earlier this year that this tax season would be “incredibly complicated,” thanks in part to confusion related to COVID-19 benefits.

To combat this, the CRA has ramped-up its services to help Canadians get through tax time, even hiring a private company to ensure taxpayers can access the support they need.