Confused about the impact of your COVID-19 benefits at tax time? Don't worry! The Canada Revenue Agency has shared a list of everything Canadians should know this year, and it answers a lot of questions.
On February 10, the federal government shared a notice outlining the upcoming tax-filing season.
First and foremost, the CRA confirmed that the tax-filing deadline for most individuals is April 30, 2022, and the payment deadline for people owing is the same.
The agency urged people to plan ahead and consider filing digitally, as well as to be wary of fraudulent CRA notices and possible scams.
What about COVID-19 benefits?
If you claimed COVID-19 benefits issued by the CRA in 2021, such as the Canada Recovery Benefit (CRB), you will need to confirm this at tax time.
The CRA says a T4A information slip will be mailed to individuals who've received COVID-19 benefits by the end of February.
If you've lost it or haven't received one yet, they are available online if you're fully registered for their My Account portal.
You must report the COVID-19 benefit payments that you received as income when you file your personal income tax return.
Before you know it, it\u2019ll be time to file your taxes! Get ready early by:\n\n Registering for My Account and signing up for email notifications\n Gathering your documents\n Finding out what\u2019s new for the 2021 tax year\n\nHere are 8 ways to get ready https://ow.ly/spKN50HS6BG\u00a0pic.twitter.com/fKXJyOrDnG— Canada Revenue Agency (@Canada Revenue Agency) 1644699615
What's important to remember is that when COVID-19 benefits were paid out, a 10% tax was withheld at source.
However, this doesn't mean you definitely won't owe anything else. You may need to pay more (or less) depending on your personal tax situation.
For example, when it comes to the CRB, those who earned more than $38,000 in net income in the calendar year must reimburse some or all of the benefit at tax time.
You can find out whether you'll owe money by using the calculator on the Government of Canada web page for the benefit in question.
"If you end up owing additional tax [...], we understand that payment could present significant financial hardship," the CRA says.
Those who are worried about paying any additional balance owing can contact the CRA about payment arrangements, which it says can "give you more time and flexibility to repay based on your financial situation."
If we\u2019re writing to you, it\u2019s likely important! Always open your CRA mail and take action. If you need help, contact us at the number provided in your letter. https://ow.ly/1nEO50HVLkS\u00a0 #CdnTaxpic.twitter.com/so8KntaMk7— Canada Revenue Agency (@Canada Revenue Agency) 1645114802
You may have also received letters from the CRA related to possibly repaying benefits, including the Canada Emergency Response Benefit (CERB). Around 200,000 Canadians are expected to get their benefits "reviewed" by officials this year, so don't panic if you get a letter asking for more information from you.
Additionally, the feds have recently reached out to thousands of people about their eligibility for CERB. Some people may be asked to pay the money back if they are found to have been ineligible.
This article's cover image was used for illustrative purposes only.
