COVID-19 Tax Resources

Once your return is complete, we will email you a “click-to-sign” request via DocuSign. If you prefer physical signing, we can include a return envelope in your tax package so you can mail back your signed forms. Or, curbside signing is available by calling ahead.

Yes, this income will be reported on a T4A slip, which is very similar to a T4. Add this to your paperwork like any other slip as it must be reported on your tax return. If you have given us Representative Authorization in the past, we may be able to access the T4A on your behalf if you did not receive one or have misplaced it.

For more details on how benefit amounts will be reported on your T4A slip, please click here.

Since these benefits are considered taxable income and the original CERB payments did not have taxes withheld, unfortunately, it is likely that many Canadians will have a tax balance owing this year. Even though the CRB is now withholding 10% tax, that is unlikely to be enough for many individuals, so it is wise to prepare for a balance owing if you’re able.

On Feb 9, 2021, it was announced that individuals who file their 2020 return, made less than $75,000 taxable income, and received a COVID-related benefit in 2020 will not be required to pay interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022. In short, no interest accumulation until the next tax deadline.

For full details, please click here to view the CRA update.

Since every individual has a unique income tax situation, CERB income will be taxed at different rates for different people. Lower-income individuals may end up paying very little tax on the income while higher-income individuals will pay more. Thus, taxing the income creates a more “fair” situation as lower-income individuals will get to keep more after-tax dollars. 

Initially, it was unclear to many whether the requirement was total income or after-expense (net) income. It was later clarified as net income and approximately 400,000 Canadians received requests to pay back CERB. Then, on Feb 9, 2021, the government announced that those who applied for CERB based on gross income and otherwise qualified and applied with good intent, would not be required to pay back the CERB.

 For full details, please click here to view the CRA update.

Eligibility (Simplified Method)
If you worked more than 50% of the time from home for a period of at least four consecutive weeks due to the COVID-19 pandemic, you can claim $2 for each day you worked from home during that period. You can then also claim $2 for any additional days you worked at home due to the pandemic. The maximum you can claim for this temporary flat rate method is $500 (2021 and 2022 tax years) ($400 maximum for 2020).

Please click here to view the government’s infographic on the topic.

For most employees, the simplified method will provide the maximum deduction allowed without the detailed record-keeping normally required for home office deduction claims.

Though the simplified method of $2/day sounds like a small deduction, it often ends up being similar or more beneficial to the detailed method, but without the extra paperwork.

If you would like help determining whether to use the simplified or detailed method, please have a look at these resources:

• Compare Simplified vs. Detailed Method
• CRA Home Office Expense Calculator
• Real-World Examples