Tuesday, January 12, 2021

CRA SENDS T4as TO COVID BENEFIT RECIPIENTS

The Canada Revenue Agency began sending out T4a slips today to Canadians who have received COVID-19 benefits, reminding them that the money is taxable income and must be recorded on their tax returns. The department said the T4as are being issued as statements of income and not necessarily as statements of money owed.

"It's going to be difficult for people and it's going to be complex or complicated for the system," Employment Minister Carla Qualtrough told CBC News last month.

"As people file their taxes, [we] are going to have to figure out what they've been ... what they owe taxes on, what has already been taken taxes off for them. If you claimed both the CERB and CRB, we took taxes off the CRB but we didn't for CERB — it's incredibly complicated," she said.

Concerned about Canadians financially stressed by the pandemic, the CRA says it has expanded the ways in which people can pay back money owed and is urging taxpayers to reach out to the agency to see which options work best for them.

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