How COVID-19 Benefits Impact Your 2020 Taxes

Lisa C. COVID-19, Finance, Newcomer Information, Updates

Received COVID-19 benefits in 2020? They are considered to be taxable incomes:

Learn where to get tax slips for the 2021 tax season.

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.

If you received the CRB, CRSB, or CRCB, 10% tax was withheld at source. However, this may not be all the tax you need to pay.

Many people may find it difficult to repay these benefits. This tax reason, Canadians are granted more time and flexibility to repay based on their individual financial situations. Learn more about the recently announced Interest Relief on 2020 Income Tax Debt due to COVID-19 Income Support.

Word of the day:

Withhold: to deduct (tax) from a payment

More information: https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/covid19-taxes.html