Received a T4A slip from the CRA? Here’s what you need to know

CRA SOURCE ARTICLE

Did you receive COVID-19 benefit payments from the Canada Revenue Agency (CRA) in 2022? If you did, you should receive a T4A Statement of Pension, Retirement, Annuity, and Other Income slip. These payments are taxable, and you need the information on your T4A slip when filing your income tax and benefit return.

If you receive correspondence from the CRA, you should open it and take the actions requested. If you have questions about the correspondence you receive, you should call the telephone number given in the letter. Additional information is available on the Benefits being reviewed? Here’s what you need to know page.

COVID-19 benefits

A T4A slip will be mailed to you by the end of February 2023. Residents of Quebec will receive a T4A slip and an RL-1 slip.

T4A slips from the Government of Canada for COVID-19-related benefits will also be available online through My Account and when using the Auto-fill my return service in certified tax-filing software.

What should you do if your T4A or RL-1 slip has incorrect information?

You may notice that your T4A slip does not reflect the amount of COVID-19 benefits you received in 2022. Perhaps you repaid an amount and it is not reflected on the slip, or maybe you didn’t make a repayment, but your slip shows a reduced amount of COVID-19 benefits. In either case, contact the CRA right away when you notice a suspected error. If your RL-1 slip has incorrect information, you should contact Revenu Québec.

Will a payment you made for a COVID-19 benefit excess payment show on your T4A slip?

If you made a repayment to the CRA between January 1 and December 31, 2022, for an excess payment received in 2020 or 2021 for any of the following benefits, this amount will be shown in box 201 of your 2022 T4A slip:

• Canada Emergency Response Benefit (CERB)

• Canada Emergency Student Benefit (CESB)

• Canada Recovery Benefit (CRB)

• Canada Recovery Sickness Benefit (CRSB)

• Canada Recovery Caregiving Benefit (CRCB)

• Canada Worker Lockdown Benefit (CWLB)

For repayments made in 2022 of benefits received in the same year, only the difference will be reported in the appropriate benefit box.

If you want to claim a repayment amount on your 2020 or 2021 return but the CRA has already issued you a notice of assessment, you can use new form T1B, Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year, when filing your 2022 income tax and benefit return. Form T1B will allow you to claim a deduction in a previous tax year without having to request a separate reassessment to your 2020 or 2021 return. This form will be available in January 2023. If you choose not to use form T1B, you will have to request a change to your 2020 or 2021 tax return. For more information, visit How to change a return.

What COVID-19 benefit amounts do you need to enter on your return?

You will need to enter the total amount of benefit payments you received and any tax that was withheld. The amounts to report on your return are stated on your T4A slip. T4A slips from the Government of Canada for COVID-19 related benefits will also be available to you online if you’re registered with My Account and have full access.

You will need to report the following amounts on your return:

• Box 200, Provincial / Territorial COVID-19 financial assistance payments

• Box 201, Repayment of COVID-19 financial assistance: The amount in this box of your federal T4A slip can be claimed as a deduction on your 2022 return, the return for the year that you received the benefit (2020 or 2021), or split between your 2022 return and the return for the year that you received the benefit.

• Box 202, Canada Recovery Benefit (CRB)

• Box 203, Canada Recovery Sickness Benefit (CRSB)

• Box 204, Canada Recovery Caregiving Benefit (CRCB)

• Box 211, Canada Worker Lockdown Benefit (CWLB)

Should you file your 2022 return by the deadline if you are waiting for the CRA to resolve an issue with your T4A slip?

Yes. The CRA encourages everyone to file by the deadline. This will ensure that there are no interruptions to your benefit or credit payments and that you avoid late-filing penalties.

You can file using the information you have available to estimate the benefit amount you received and any income tax withheld from COVID-19 benefit payments. If needed, the CRA will correct the information and send you an amended or cancelled T4A slip. If you receive an amended or cancelled T4A slip, you can request changes to your return.

What options do you have for paying an income tax debt?

Although owing income tax can be a normal occurrence, it is important to address it sooner than later. Income tax debt can accrue interest. If you owe money to the CRA but cannot pay your balance when it's due, we still encourage you to file your income tax and benefit return on time.

We understand that a tax debt payment could present a significant financial hardship. In that case, our expanded payment arrangements could work for you. This will give you more time and flexibility to repay based on your financial situation. In some circumstances, you may ask for relief from penalties and interest, and reduce the amount you owe. Go to Cancel or waive penalties or interest for more information.

What if you need to contact the CRA about your T4A slip but can’t get through to an agent?

We are aware that everyone’s tax situation is unique and may require contacting one of our agents. We thank you for your patience in advance. Tax season is the busiest time for the CRA. Unfortunately, this means you may experience long wait times. Agents work hard to answer calls as fast as possible to deliver the services that Canadians expect from the CRA.

We understand that waiting to get through in these situations can be stressful. The individual tax enquiries line is open Monday to Friday 8 a.m. to 8 p.m., local time, and Saturday 9 a.m. to 5 p.m., local time, except holidays. We offer estimated wait times on the contact information page. This will help you decide when the best time to call is.

For more information, visit T4A: Report COVID-19 amounts or Questions and answers about filing your taxes.

You can learn more about filing your tax return and the above slips by visiting the links above or by scheduling a free consultation with us.