Reporting COVID-19 benefit repayments
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Reporting COVID-19 benefit repayments
PDF version (opens in new window) Pre-test question
That's correct
If an individual repaid COVID-19 benefits during the year, they can claim a deduction to ensure they do not pay tax on any amounts they repaid.
Sorry, that is incorrect
If an individual repaid COVID-19 benefits during the year, they can claim a deduction to ensure they do not pay tax on any amounts they repaid.
Instructions
- Open the tax software
- Review the Background information and Required slips (tax slips, receipts, etc.)
- Provide all required information for the appropriate sections of the tax software
- Once completed, compare your results with the solution provided
- Afterwards, refer to Key points of the tax software and the Takeaway points
Background information
Situation
Amy worked part time at Madame Chic Ltd. She also received Advanced Canada workers benefit payments.
In 2020, she had applied for and received the Canada Emergency Response Benefit (CERB). However, in 2025 Amy received notice that she was not eligible for $2,000 of the CERB received so she made a repayment for this amount to the CRA.
| Catégories | Information |
|---|---|
| Name | Amy Martin |
| Social insurance number (SIN) | 000 000 000 |
| Address | 123 Main Street City, Province X0X 0X0 |
| Date of birth (DOB) | October 9, 1990 |
| Marital status | Single |
| Dependant | Son: Tyler Martin DOB: January 1, 2014 |
Required slips
T4A – Statement of Pension, Retirement, Annuity, and Other Income slip (Canada Revenue Agency)
T4A – Statement of Pension, Retirement, Annuity, and Other Income
Protected B
Payer’s name: Canada Revenue Agency
Recipient’s name and address:
Last name: Martin
First name: Amy
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Other information (see page 2)
Box 201: 2,000.00
T4 – Statement of Remuneration Paid (Madame Chic Ltd.)
T4 – Statement of Remuneration Paid
Protected B
Employer’s name: Madame Chic Ltd.
Employee’s name and address:
Last name: Martin
First name: Amy
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 20,000.00
Box 16: Employee’s CPP contributions – see over: 888.94
Box 18: Employee’s EI premiums: 315.90
Box 24: EI insurable earnings: 20,000.00
Box 26: CPP/QPP pensionable earnings: 20,000.00
Box 45: Employer-offered dental benefits: 1
RC210 – Advanced Canada workers benefit (ACWB) statement
RC210 – Advanced Canada workers benefit (ACWB) statement
Issued by: Canada Revenue Agency
Martin, Amy
123 Main Street
City, Province X0X 0X0
Social insurance number: 000 000 000
Box 10: Total Basic Advanced Canada workers benefit: 759.00
Review your results
Solution to Reporting COVID-19 benefit repayments.
Key points of the tax software
Important note
To access complete instructions on the various steps of entering data into the software, click on the title of each section below.
- Click T4 and employment income in the left-side menu
- Click the + sign next to T4 income (earned in any province except Quebec)
- Enter the information from the tax slip
Federal COVID-19 benefits repayment (T4A box 201)
- Click T4A, T4FHSA and pension income in the left-side menu
- Click the + sign next to T4A – Pension, retirement, annuity, and other income (COVID-19 benefits) in the T4, T4FHSA and pension income section
- Select [201] Repayments of a federal COVID-19 financial assistance from the OTHER INFORMATION (COVID-19 benefits) drop-down menu
- Enter the amount from the individual's T4A slip
Advanced Canada workers benefit (RC210)
- Click Other information slips in the left-side menu
- Click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500]
- Enter the information from the tax slip
Takeaway points
Federal COVID-19 benefits repayment
- The individual who makes a federal COVID-19 benefits repayment for amounts they received in a prior year may claim the repayment as a deduction
- The repayment is found in box 201 of their T4A slip
- If the individual received their CERB from Service Canada, the repayment amount is reported in box 30 of their T4E slip, along with any other employment insurance (EI) repayment amounts
- Since 2023, the repayment amount can be claimed on line 23200 of the tax return, only for the year the repayment was made
- in this case, Amy's deduction for the $2,000 repayment is claimed on line 23200 of her 2025 tax return
Page details
2025-09-24