How do I claim a tax deduction on my COVID-19 benefit repayment?

by TurboTax•1• Updated 1 week ago

If you repaid a CERB, CESB, CRB, CRSB, or CRCB amount by the end of 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)

A repayment made after December 31, 2022, for 2020 or 2021 COVID-19 benefits that were reported as income, can only be claimed as a deduction for the amount repaid, on the tax return for the year of the repayment. For more information, see What if I make a repayment after December 31, 2022?

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 2020 return

You can choose this option if you:

Receive a COVID benefit in 2020, and
Repaid the amount in 2020, 2021, or 2022

If your 2020 return has already been filed, you’ll need to request a change to that return through the CRA. Make sure the amended 2020 repayment claim amounts aren’t deducted a second time on your 2021 return.

Claim the deduction on your tax year 2021 return

You can choose this option if you:

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

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(s) you repaid it.

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.