As per the Canada Revenue Agency (CRA) the amount in box 201 of the T4A is a deduction when entered in your return.

Line 23200 – Other deductions

Claim the allowable amounts not deducted anywhere else on your return. Specify the deduction you are claiming in the space provided on the return.

Federal, provincial and territorial COVID-19 benefit repayments made in 2023 can be claimed as a deduction on line 23200 of your 2023 return.

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