Received a T4A slip from us? Here’s what you need to know.
CRA SOURCE ARTICLE
If you have applied and received COVID-19 benefit payments from the Canada Revenue Agency (CRA) in 2021, this explains why you have received a T4A Statement of Pension, Retirement, Annuity, and Other Income slip. These benefits are taxable, and the information on your T4A slip is needed when filing your income tax and benefit return.
If you receive correspondence from the CRA, you should open it and take the actions requested in a timely manner. If you have questions about the correspondence you receive, you should call the telephone number provided in the letter. Additional information is also available on the Benefits being reviewed? Here's what you need to know page.
COVID-19 benefits
If you received benefits issued by the CRA in 2021, such as the Canada Recovery Benefit (CRB), a T4A information slip will be mailed to you by the end of February 2022. Residents of Quebec will receive a T4A information slip and an RL-1 slip.
T4A information slips from the Government of Canada for COVID-19-related benefits will also be provided online if you're registered for My Account and have full access. To have full access to My Account, you need to enter the CRA security code we issued to you after completing the first step of the registration process.
T4A information slips, including information for COVID-19-related benefits, are also available through the Auto-fill my return service in certified tax filing software. This service automatically fills in parts of an income tax and benefit return with information that the CRA has on file. To use the service, you must be registered for My Account.
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 income you actually received. Perhaps you repaid an amount and it is not reflected on the slip. Or maybe you didn't make a repayment but the income on the slip has been reduced by some amount. In either case, contact the CRA right away when you notice the suspected error.
What happens if you made a payment or payments toward your COVID-19 benefit overpayment? Will that appear on your T4A slip?
If you received CRB, Canada Recovery Sickness Benefit (CRSB), and Canada Recovery Caregiving Benefit (CRCB) overpayments in 2020 or 2021 and made a repayment toward the amount you owe, any amounts you repaid to the CRA between January 1 and December 31, 2021, should be reflected on your 2021 T4A slip. For repayments in 2021 of benefits received in 2021, only the difference will be reported in the appropriate benefit box.
If you repaid Canada Emergency Response Benefit (CERB), Canada Emergency Student Benefit (CESB), CRB, CRSB, and CRCB benefits you received from the CRA in 2020 after December 31, 2020, you should receive a 2021 T4A slip by the end of February 2022 showing the amount of the repayment in Box 201. If you received your CERB from Service Canada, the amount repaid in 2021 will be reported on your 2021 T4E slip along with other EI amounts repaid. Service Canada will send you a letter showing the amount of CERB you repaid.
What amount of COVID-19 benefits do you need to enter on your income tax and benefit return?
You will need to enter the total amount of benefit payments you received and any tax that was withheld. The amount to report on your tax return is stated on the T4A slip (if you applied through the CRA). T4A slips from the Government of Canada for COVID-19 related benefits will also be provided to you online if you're registered with My Account and have full access.
You will need to report the following amounts on your tax return:
Box 200, Provincial / Territorial COVID-19 financial assistance payments
Box 201, Repayment of COVID-19 financial assistance (The amount in this box can be claimed as a deduction on the return for either 2021 or for the year in which the benefit was received.)
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 2021 income tax and benefit return if you are waiting for the CRA to resolve an issue with the T4A slip you received?
Yes. The CRA encourages everyone to file by the deadline. This will ensure there are no interruptions to benefit or credit payments and that you avoid late-filing penalties.
You can file using the information you have available to estimate the income 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 if they are required.
What options do you have for paying back income tax debt?
While 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. Also, taxpayer relief is available if you can't meet your tax obligations because of circumstances beyond your control. The CRA may cancel or waive penalties or interest under certain conditions.
What if you have to contact the CRA about your T4A or RL-1 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 are working hard to answer calls as fast as possible to deliver 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 8am to 8pm, local time, and Saturday 9am to 5pm, local time, except holidays.
For more information, visit T4A: Report COVID-19 amounts or our Questions and answers about filing your taxes page.
You can learn more about tax filing by visiting the links above or by scheduling a free consultation with us.