Wellington-Altus Newsroom

Keep up-to-date with our current happenings

> Home  | Newsroom

COVID-19 Benefits: Are They Taxable Income Receipts?

Download this article as a PDF.

The COVID-19 pandemic continues to be a source of great financial hardship for many Canadians. In response, the Government of Canada has, and continues to provide a variety of benefits to both Canadian individuals and businesses to help support them financially through this difficult period.

Here is a summary of the most popular COVID-19 benefits, their purpose and amount, and which benefits are taxable income receipts, and which are not.

For a complete listing, including provincial support, click here.


Individual COVID-19 Benefits

Canada Emergency Recovery Benefit (CERB)

Purpose & Benefit AmountTaxable Income Receipt?
• Benefits employed/self-employed Canadians who had to stop working due to COVID-19.
• $2,000/4-week period, for a maximum of 28 weeks between March 15, 2020, and September 26, 2020.
• Visit Canada.ca for further details on CERB eligibility criteria.
• Yes, taxed as regular income
• No tax withheld at source
• The government will issue a T4A tax slip or T4E tax slip (if applied through Service Canada) reporting benefits received

Canada Child Benefit (CCB) Top-up

Purpose & Benefit AmountTaxable Income Receipt?
• One-time increase to the May 2020 CCB to those Canadian families already receiving CCB. The one-time payment essentially doubled the monthly allocation per child.• No, CCB is not a taxable income receipt

Special Goods and Services Tax (GST) Top-up

Purpose & Benefit AmountTaxable Income Receipt?
• One-time increase to the April 2020 GST credit to those Canadians already receiving the GST credit.• No, GST credit is not a taxable income receipt

One-time tax-free payment for Old Age Security (OAS) and Guaranteed Income Supplement (GIS)

Purpose & Benefit AmountTaxable Income Receipt?
• One-time tax-free payment in July 2020 of $300 for Canadian seniors eligible for OAS, with an additional $200 for Canadian seniors eligible for GIS.• Normally OAS is a taxable income receipt, but this one-time payment is not a taxable income receipt
• No, GIS is not a taxable income receipt

Canada Emergency Student Benefit (CESB)

Purpose & Benefit AmountTaxable Income Receipt?
• Benefits post-secondary students, recent post- secondary and high school graduates who were unable to find work due to COVID-19.
• $1,250/4-week period for a maximum of 16 weeks, between May 10 and August 29, 2020.
• Extra $750 (total benefit amount of $2,000)/ 4-week period, if they had a disability or dependents.
• Visit Canada.ca for further details on CESB eligibility criteria.
• Yes, taxed as regular income
• No tax withheld at source
• The government will issue a T4A tax slip

Canada Recovery Benefit (CRB)

Purpose & Benefit AmountTaxable Income Receipt?
• Benefits employed/self-employed Canadians whose income is reduced by at least 50% due to COVID-19, and who are not eligible for EI benefits.
• $1,000/2 week period, ($900 after taxes withheld) for 26 periods between September 27, 2020, and September 25, 2021.
• CRB benefits will be clawed back by 50% ($0.50 for every $1) when recipients report net income in excess of $38,000 annually.
• Visit Canada.ca for further details on CRB eligibility criteria.
• Yes, taxed as regular income
• 10% income tax withheld at source
• The government will issue a T4A tax slip reporting benefits received

Canada Recovery Caregiving Benefit (CRCB)

Purpose & Benefit AmountTaxable Income Receipt?
• Benefits employed and self-employed Canadians who are unable to work because they must care for their child <12 years old or a family member who needs supervised care. This applies if their school, regular program, or facility is closed or because they are sick, self- isolating, or at serious risk of health complications due to COVID-19.
• $500/1 week period, ($450 after taxes withheld) for a maximum of 26 weeks between September 27, 2020, and September 25, 2021. Only one eligible individual in the same household can apply for the benefit per week.
• Visit Canada.ca for further details on CRCB eligibility criteria.
• Yes, taxed as regular income
• 10% tax withheld at source
• The government will issue a T4A tax slip reporting benefits received

Canada Recovery Sickness Benefit (CRSB)

Purpose & Benefit AmountTaxable Income Receipt?
• Benefits employed/self-employed individuals who are unable to work because they are sick or need to self-isolate due to COVID-19 or have an underlying health condition that puts them at greater risk of getting COVID-19.
• $500/1 week period, ($450 after taxes withheld) for a maximum of 2 weeks between September 27, 2020, and September 25, 2021.
• Visit Canada.ca for further details on CRSB eligibility criteria.
• Yes, taxed as regular income
• 10% tax withheld at source
• The government will issue a T4A tax slip reporting benefits received


Summary of T4A Slips reporting Federal COVID-19 Benefits

Canadian individuals will receive a T4A slip from the CRA if they received any of the COVID-19 emergency or recovery benefits during 2020:

• Canada Emergency Response Benefit (CERB) with the CRA
• Canada Emergency Student Benefit (CESB)
• Canada Recovery Benefit (CRB)
• Canada Recovery Caregiving Benefit (CRCB)
• Canada Recovery Sickness Benefit (CRSB)
Where an individual applied for the Canada Emergency Response Benefit (CERB) through Service Canada, such benefits will be reported on a T4E.

T4As and T4Es should be received by recipients by mid-March 2021 at the latest. As well, copies of the slips are available on My Account for Individuals portal on Canada.ca.

The COVID-19 benefit payment amounts reported on a T4A slip or T4E slip are taxable income receipts and must be reported by Canadian individuals on their 2020 Income Tax and Benefit Return.

Share This Article:

2024 Tax Resources

2024 Wellington-Altus Corporate Tax Reference Card Personal Tax Planning Cards LIF and RLIF Minimum & Maximum Factors Personal and Corporate Tax Integration Reference Cards 2024

READ MORE »

The Canada Pension Plan (CPP) – What’s new for 2024?

Most Canadians are familiar with CPP, which provides retirement, disability, survivor, and death benefits for individuals that have been employed in Canada.1 CPP is funded by mandatory annual contributions by employees, employers and self-employed individuals based on their CPP pensionable earnings, which typically include salary, wages or other remuneration, commissions, bonuses, most taxable benefits, and tips/ gratuities.

READ MORE »

Foreign Spin-offs

Many Canadian shareholder investors (“investor”) own foreign securities. Occasionally a foreign corporation (“original corporation”) will spin-off a subsidiary or business line to its shareholders, so the subsidiary becomes a separate, publicly traded corporation (“spin-off corporation”). In this situation, the investor now owns two separate foreign securities.

READ MORE »

The information contained herein has been provided for information purposes only. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. Wellington-Altus Financial Inc. (Wellington-Altus) is the parent company to Wellington-Altus Private Wealth Inc. (WAPW), Wellington-Altus Private Counsel Inc. (WAPC), Wellington-Altus Insurance Inc. (WAII), Wellington-Altus Group Solutions Inc. (WAGS), and Wellington-Altus USA. Wellington-Altus (WA) does not guarantee the accuracy or completeness of the information contained herein.

©2024, Wellington-Altus Private Wealth Inc., Wellington-Altus Private Counsel Inc., Wellington-Altus Insurance Inc., Wellington-Altus Group Solutions Inc., and Wellington-Altus USA. ALL RIGHTS RESERVED. NO USE OR REPRODUCTION WITHOUT PERMISSION. www.wellington-altus.ca

We use cookies on our website to enhance user experience, analyze and improve our services, and learn what information interests you. By continuing to use our website, you agree to our use of cookies. You may change your cookie preferences in your browser or device settings. Learn More How to Delete Cookies