Reporting COVID-19 benefits
Reporting COVID-19 benefits
Pre-test question
That is correct
These payments are taxable income and must be reported on an individual’s tax return.
Sorry, that is incorrect
These payments are taxable income and must be reported on an individual’s tax return.
Instructions
- Open the tax software
- Review the Background information and Required slips (tax slips, receipts, etc.)
- Provide all required information for the appropriate sections of the tax software
- Once completed, compare your results with the solution provided
- Afterwards, refer to the Takeaway points
Background information
Situation
Pierre worked at Great Services Inc. He applied for the Canada Recovery Benefit (CRB) and received payments in 2022. He also applied for and received the Canada Recovery Sickness Benefit (CRSB) in the same year.
Identification information
| Name | Pierre Knowlton |
|---|---|
| Social insurance number (SIN) | 000 000 000 |
| Address | 123 Main Street City, Province X0X 0X0 |
| Date of birth | October 9, 1990 |
| Marital status | Single |
Required slips
T4A – Statement of Pension, Retirement, Annuity, and Other Income slip (Canada Revenue Agency)
Text version for the above image
T4A – Statement of Pension, Retirement, Annuity, and Other Income
Protected B
Payer’s name: Canada Revenue Agency
Recipient’s name and address:
Last name: Knowlton
First name: Pierre
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 22: Income tax deducted – line 437000: 1,300.00
Other information (see page 2)
Box 202: 12,000.00
Box 203: 1,000.00
T4 – Statement of Remuneration Paid (Great Services Inc.)
Text version for the above image
T4 – Statement of Remuneration Paid
Protected B
Employer’s name: Great Services Inc.
Employee’s name and address:
Last name: Knowlton
First name: Pierre
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 15,200.00
Box 16: Employee’s CPP contributions – see over: 637.78
Box 18: Employee’s EI premiums: 240.24
Box 24: EI insurable earnings: 15,200.00
Box 26: CPP/QPP pensionable earnings: 15,200.00
Review your results
Solution to Reporting COVID-19 benefits.
Takeaway points
Steps to follow
- Review their background information and required slips
- In Interview setup, tick the box next to Pension income, other income and split pension income, COVID-19 benefits (T4A, T4A(OAS), T4A(P), T4A-RCA, T4RSP, T4RIF, T1032) in the Pension section
- Click T4 and employment income in the left-side menu, then click the + sign next to T4 income (earned in any province except Quebec) and enter the required information
- Click T4A and pension income in the left-side menu and click the + sign next to T4A – Pension, retirement, annuity, and other income (COVID-19 benefits) in the Pension income section
- Enter the Federal income tax deducted, if any, into field 22 and then select the appropriate option from the OTHER INFORMATION (COVID-19 benefits) drop-down menu to enter the amount reported on the T4A
The individual may be eligible to receive more than one type of COVID-19 benefit. However, only one T4A slip is issued and each type of benefit received is reported in its respective box. Although each amount is entered into the tax software individually, only the total amount of COVID-19 benefits is reported on Line 13000, Other income.
For more information, refer to UFile instructions.
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