091| Covid19 and Taxes
Last year was another year where we all felt the influence of ongoing pandemic measures. The government has continued to offer support to those affected by COVID, which means another unique year when it comes to filing your #taxes.
How are COVID-19 benefits taxed?
COVID benefit payments were already adjusted to cover the taxable portion at the rate of 10%.
But that doesn’t mean you don’t have to report these benefits while filing. Depending on your remaining income and other factors, you might still be on the hook for taxes. To make sure your return is properly assessed, you do need to report these benefits while filing.
Which tax forms do I need?
If you received any amounts from the following COVID benefits, you’ll get a T4A slip outlining your benefit details for 2022:
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)
Canada Worker Lockdown Benefit (CWLB)
Provincial or territorial COVID financial assistance payments
Additional COVID-19 tax credits and deductions
There are some options for additional credits and deductions that are COVID specific. If any of these apply to you, you should definitely claim them when filing.
Work from home tax credit
This tax credit allows Canadians working from home due to the pandemic to deduct some of their remote work expenses. You can claim up to $500 for the 2022 tax year if you use the flat rate method of $2 for each day you worked from home.
Digital News Subscription Tax Credit
If you paid for a digital news subscription to a qualified Canadian journalism organization, you can claim up to $500 for it on your taxes.
Canada Training Credit
If you paid eligible tuition and fees for courses taken in 2022, you can claim the Canada Training Credit, which offers up to $250 each year, up to a lifetime maximum of $5,000. If you’ve opted to retrain for a different line of work due to #COVID or for any other reason, this is a great benefit to claim.
The last step on your list is to contact us for help! Reach out to us for number crunching assistance.