Which of these 2020 tax situations apply to you?
Last year was taxing enough
Go into tax season prepared
In a normal year, taxes can be complicated enough; and for many, 2020 was anything but normal. If you were one of the many Canadians who experienced
a change in income or employment, you might have received newly implemented government benefits in light of the COVID-19 pandemic, and filing your taxes may be more confusing than usual this year.
In partnership with H&R Block, we’ve put together a list of 2020 tax considerations that may apply to you so that you can plan ahead and not get caught by surprise.
YES
Did you receive any financial benefits in 2020 related to COVID-19?
NO
I'M NOT SURE
Select the ones that you received to read more about them.
Canada Recovery Sickness Benefit (CRSB) or Canada Recovery Caregiving Benefit (CRCB)
Canada Emergency Response Benefit (CERB) or Canada Emergency Student Benefit (CESB)
Canada Recovery Benefit (CRB)
The amount you received is 100% taxable. While there was an automatic 10% tax withheld by the CRA upfront, you may still owe taxes depending on your total income in 2020.
You’ll be issued a T4A slip directly from the CRA and you can use that when you file your tax return.
Canada Recovery Sickness Benefit (CRSB) or Canada Recovery Caregiving Benefit (CRCB)
This amount qualifies as income and is 100% taxable, since no tax was deducted before landing into your bank account. This means you’ll owe taxes on that amount.
For those who received CERB or CESB benefits issued by the CRA, you’ll be issued a T4A slip directly from the CRA showing the amount to include in income when you file your tax return. If you received CERB benefits through Service Canada, the amount will be included with regular EI benefits of a T4E slip.
Canada Emergency Response Benefit (CERB) or Canada Emergency Student Benefit (CESB)
The amount you received is 100% taxable. While there was an automatic 10% tax withheld by the CRA upfront, you may still owe taxes depending on your total income in 2020 since the federal tax rate is 15%.
You will be issued a T4A slip directly from the CRA and you can use that when you file your tax return.
Canada Recovery Benefit (CRB)
An important note about both the CRB is that if your net income in 2020 was more than $38,000 and you received either of these benefits, you will have to repay $0.50 for every dollar of net income you earned above $38,000 on your tax return.
That’s one less thing to worry about for your 2020 taxes.
Great!
See if any of the options below ring a bell for you!
2020 tax
considerations that may apply to you
YES
NO
I'M NOT SURE
Did you work from home in 2020 more than 50% of the time, specifically due to COVID-19?
Simplified
Detailed
The simplified flat-rate method requires you to fill out a T777S form. You’re allowed to claim $2 per day, for a maximum of 200 days, which means up to a maximum deduction of $400. You don’t need receipts, or anything signed by your employer. Just fill out the T777S form and file it with your tax return.
You’re able to claim work from home expenses on your 2020 tax return. There are two methods to go about this: simplified and detailed.
you can’t claim this amount, but on the bright side, you weren’t expected to be “at work” 24 hours a day.
Unfortunately,
Simplified
If your expenses totaled more than $400, you can use the detailed method, in which you claim the exact amounts you spent. In addition to the T777S, you’ll need a T2200S form signed by your employer which certifies that you worked from home due to the pandemic. You’ll also need the receipts for all of your expenses. For more information on which expenses you can claim and how to calculate them, visit the CRA website.
Detailed
Does this sound like you
You worked from home in 2020 due to the COVID-19 pandemic or your employer required you to work from home, and
You worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020, and
You weren’t reimbursed for any kind of home-office expense during this period by your employer.
see how you can claim it
Then you’re eligible to claim a deduction for home office expenses for the period you worked from home!
There are also a couple of note-worthy callouts that are unrelated to the pandemic for you to keep in mind…
YES
NO
Do you live in Ontario, Manitoba, Saskatchewan, or Alberta?
You may be eligible to receive the Climate Action Incentive amount, which is a federal refundable tax credit, meaning that it can go towards lowering the taxes you owe; and if you don’t owe any taxes, you’ll receive this amount as a refund!
YES
NO
Did you receive Canada Child Benefit in 2020?
The Canada Child Benefit is not a taxable benefit. So, whether you got your regular payment or received top-up payments from the government, none of that is taxable and you don’t need to report it in your income tax return.
If you have children, definitely look into this benefit as it can help with payments you make for your kiddos.
If you don’t have children, you can move right along.
YES
NO
Did you receive GST payments in 2020?
The GST payments are not taxable. So whether you got your regular payment or received top up payments in 2020, none of that is taxable and you don’t need to report it in your income tax return.
You might want to look into whether or not you’re eligible to receive these. You may be missing out on refunds you can claim!
For payments like the Canada Child Benefit or GST, not filing your taxes on time (or at all) means that you’ll either experience an interruption in payments or that you won’t receive them at all. It’s very important that you file your taxes annually before April 30 to make sure you receive all the payments you’re entitled to, on time and without interruption.
H&R Block is here to help guide you through your most complicated tax year. No matter what your life or work situation is, or your preferred filing method, they have the right solution for you.
As you weren’t charged the “fuel charge” during the year, you can’t claim this credit. That said, it’s a good idea to check the CRA website to see if there are other provincial or territorial credits you do qualify for!
This year, the government will be providing interest relief to those who received COVID-related income support benefits, giving Canadians more time and flexibility for any amounts owing. In order to not be charged interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022, you must file your 2020 tax return before this year’s deadline.
This year, the government will be providing interest relief to those who received COVID-related income support benefits, giving Canadians more time and flexibility for any amounts owing. In order to not be charged interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022, you must file your 2020 tax return before this year’s deadline.
This year, the government will be providing interest relief to those who received COVID-related income support benefits, giving Canadians more time and flexibility for any amounts owing. In order to not be charged interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022, you must file your 2020 tax return before this year’s deadline.
Canada Recovery Sickness Benefit (CRSB) or Canada Recovery Caregiving Benefit (CRCB)
Canada Emergency Response Benefit (CERB) or Canada Emergency Student Benefit (CESB)
Canada Recovery Benefit (CRB)
The amount you received is 100% taxable. While there was an automatic 10% tax withheld by the CRA upfront, you may still owe taxes depending on your total income in 2020 since the federal tax rate is 15%.
This year, the government will be providing interest relief to those who received COVID-related income support benefits, giving Canadians more time and flexibility for any amounts owing. In order to not be charged interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022, you must file your 2020 tax return before this year’s deadline.
You will be issued a T4A slip directly from the CRA and you can use that when you file your tax return.
An important note about both the CRB is that if your net income in 2020 was more than $38,000 and you received either of these benefits, you will have to repay $0.50 for every dollar of net income you earned above $38,000 on your tax return.
Canada Recovery Benefit (CRB)
The amount you received is 100% taxable. While there was an automatic 10% tax withheld by the CRA upfront, you may still owe taxes depending on your total income in 2020.
This year, the government will be providing interest relief to those who received COVID-related income support benefits, giving Canadians more time and flexibility for any amounts owing. In order to not be charged interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022, you must file your 2020 tax return before this year’s deadline.
You’ll be issued a T4A slip directly from the CRA and you can use that when you file your tax return.
Canada Recovery Sickness Benefit (CRSB) or Canada Recovery Caregiving Benefit (CRCB)
This amount qualifies as income and is 100% taxable, since no tax was deducted before landing into your bank account. This means you’ll owe taxes on that amount.
This year, the government will be providing interest relief to those who received COVID-related income support benefits, giving Canadians more time and flexibility for any amounts owing. In order to not be charged interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022, you must file your 2020 tax return before this year’s deadline.
For those who received CERB or CESB benefits issued by the CRA, you’ll be issued a T4A slip directly from the CRA showing the amount to include in income when you file your tax return. If you received CERB benefits through Service Canada, the amount will be included with regular EI benefits of a T4E slip.
Canada Emergency Response Benefit (CERB) or Canada Emergency Student Benefit (CESB)
YES
NO
I'M NOT SURE
Canada Recovery Sickness Benefit (CRSB) or Canada Recovery Caregiving Benefit (CRCB)
Canada Emergency Response Benefit (CERB) or Canada Emergency Student Benefit (CESB)
Canada Recovery Benefit (CRB)
The amount you received is 100% taxable. While there was an automatic 10% tax withheld by the CRA upfront, you may still owe taxes depending on your total income in 2020 since the federal tax rate is 15%.
This year, the government will be providing interest relief to those who received COVID-related income support benefits, giving Canadians more time and flexibility for any amounts owing. In order to not be charged interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022, you must file your 2020 tax return before this year’s deadline.
You will be issued a T4A slip directly from the CRA and you can use that when you file your tax return.
An important note about both the CRB is that if your net income in 2020 was more than $38,000 and you received either of these benefits, you will have to repay $0.50 for every dollar of net income you earned above $38,000 on your tax return.
Canada Recovery Benefit (CRB)
The amount you received is 100% taxable. While there was an automatic 10% tax withheld by the CRA upfront, you may still owe taxes depending on your total income in 2020.
This year, the government will be providing interest relief to those who received COVID-related income support benefits, giving Canadians more time and flexibility for any amounts owing. In order to not be charged interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022, you must file your 2020 tax return before this year’s deadline.
You’ll be issued a T4A slip directly from the CRA and you can use that when you file your tax return.
Canada Recovery Sickness Benefit (CRSB) or Canada Recovery Caregiving Benefit (CRCB)
This amount qualifies as income and is 100% taxable, since no tax was deducted before landing into your bank account. This means you’ll owe taxes on that amount.
This year, the government will be providing interest relief to those who received COVID-related income support benefits, giving Canadians more time and flexibility for any amounts owing. In order to not be charged interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022, you must file your 2020 tax return before this year’s deadline.
For those who received CERB or CESB benefits issued by the CRA, you’ll be issued a T4A slip directly from the CRA showing the amount to include in income when you file your tax return. If you received CERB benefits through Service Canada, the amount will be included with regular EI benefits of a T4E slip.
Canada Emergency Response Benefit (CERB) or Canada Emergency Student Benefit (CESB)