I have made Covid repayments in 2022 through installments. Should I be deducting them and how do I do that?

[snehalp]

Hello chicagojoe96, 

• If you repaid a CERB, CESB, CRB, CRSB, or CRCB amount by Dec 31, 2022, you can choose to claim a tax deduction either:
  • In the year you received the benefit amount, or
  • In the year you repaid it, or
  • Split between those two years (if the total deduction isn't more than your total repayment)
• If you repaid a CERB, CESB, CRB, CRSB, or CRCB after Dec 31, 2022, you can only claim a deduction for the amount repaid in the year of the repayment.

Generally, repayment amounts are shown on your T4A slip for the year in which you made the repayment. If you received CERB from (and repaid it to) Service Canada, however, the repayment amount will appear on your T4E instead.

Your tax deduction is equal to the benefit amount you repaid minus any repaid amounts that you've already deducted on another return. Visit the CRA’s webpage on Tax Treatment of COVID-19 Benefit Amounts for examples on how this might work.

For instructions on how to claim your deduction in TurboTax, select an option below:

 

Claim the deduction on your tax year 2022 return

You can choose this option if you:

• Received a COVID benefit in 2020 or 2021 and repaid the amount in 2022 

Follow these steps in TurboTax:

1. Open TurboTax for tax year 2022
2. Enter your T4A or T4E amounts into the Income section
3. Select Find from the menu
4. Enter repayment in the search field, then:

• If you’re using TurboTax Online, select Repayments of COVID-19 benefits, then select Go
• If you’re using TurboTax CD/Download, select Repayment of COVID benefits, then select Go

1. On the Repayments of federal COVID-19 benefits made before January 1, 2023 step, enter your repayment amount(s)
2. When you’re finished, select Continue

 

Split the deduction between two returns

You can choose this option if you:

• Received a COVID benefit in 2020 and repaid the amount in 2021 or 2022, or
• Received a COVID benefit in 2021 and repaid the amount in 2022

Remember, you can only split your deduction between the year you received the benefit amount and the year you repaid it.

If you made a partial repayment claim on your 2020 or 2021 return (as per the steps above) and want to claim the remainder on your 2022 return, follow these steps in TurboTax:

1. Open TurboTax for tax year 2022
2. Enter your T4A or T4E amounts into the Income section
3. Select Find from the menu
4. Enter repayment in the search field, and then:

• If you’re using TurboTax Online, select Repayments of COVID-19 benefits, then select Go
• If you’re using TurboTax CD/Download, select Repayment of COVID benefits, then select Go

1. On the Repayments of federal COVID-19 benefits made before January 1, 2023 step, enter the repayment amounts you claimed in 2020 and/ or 2021* and how much you’d like to claim in 2022
2. When you’re finished, select Continue

*Note: If you haven’t yet made the partial repayment claim on your 2020 return (and that return has already been filed), you’ll need to request a change to your 2020 return through the CRA. TurboTax won’t automatically make the amendment request for you.

Related information

How do I return or repay the CERB?

CERB/CRB Tax Info Centre

I hope this answers your question on covid-19 repayment, if you have further questions please feel free to respond in this thread.