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COVID-19 Benefits - Interest and Repayment Relief
This will give Canadians more time and flexibility to pay if they have an amount owing.
COVID-19 Benefits - Interest and Repayment Relief
Canada government is trying to help Canadians with financial impacts as a result of the ongoing pandemic
.Individuals with a taxable income of $75,000 or less in 2020 will not be required to pay interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022 if they have received income support in 2020 through one or more of the following:
To qualify for targeted interest relief, individuals must have had a total taxable income of $75,000 or less in 2020 and have received income support in 2020 through one or more of the following COVID-19 measures
:the Canada Emergency Response Benefit (CERB);
the Canada Emergency Student Benefit (CESB);
the Canada Recovery Benefit (CRB); the Canada Recovery Caregiving Benefit (CRCB);
the Canada Recovery Sickness Benefit (CRSB);
Employment Insurance benefits; or similar provincial emergency benefits.
The Canada Revenue Agency (CRA) will automatically apply the interest relief measure for individuals who meet these criteria., EI benefits, or similar provincial emergency benefits. Interest relief will be automatically applied.
CRA-administered credits and benefits normally paid monthly or quarterly, such as the Canada Child Benefit and the goods and services tax/harmonized sales tax credit will not be applied to reduce individuals’ tax debt owing for the 2020 tax year.
CRA has not extended the tax filing deadline.
Options to claim your repayment as a deduction
If you repaid benefit amounts on or after January 1, 2023, you can only claim a deduction in the year you made the repayment.
If you repaid benefit amounts between January 1, 2021 and December 31, 2022, you may choose one of these 2 options:
- Claim your repayments as a deduction in the year you made the repayment or in the year you received the benefits
- Split the deduction between your tax returns, as long as you do not deduct more than what you repaid
If you made repayments before December 31, 2020, your repayments should have been subtracted from your total benefit amount on your 2020 T4A slip. You did not pay tax on amounts you repaid in 2020.
For benefit repayments made in 2022, you may: