From UFile's tax expert Gerry Vittoratos.
Canada Recovery Benefit (CRB)
See our previous blog article for details. This benefit was phased out on October 23, 2021.
Canada Worker Lockdown Benefit (CWLB)
To replace the Canada Recovery Benefit (CRB), the federal government has introduced the new Canada Worker Lockdown Benefit (CWLB) as a temporary measure that offers income support to employees and self-employed individuals who cannot work due to a COVID-19 lockdown. Initially, the CWLB was only available to those whose region was designated by a COVID-19 lockdown order; however, pursuant to a recent announcement, the CWLB was expanded to include workers in regions where provincial or territorial governments have introduced capacity-limiting restrictions of 50 percent or more.
To be eligible for this benefit, you must meet all the following criteria:
The benefit amount is $300 per week ($270 after taxes withheld) and available until May 7, 2022, with retroactive application to October 24, 2021, should the situation warrant it.
Taxation of COVID benefits
As mentioned in a previous blog entry, all COVID-related benefits, including the CWLB mentioned above, are taxable on your tax return. These benefits are added to your other income.
Unlike the CERB, the tax on newer benefits such as the CRB and the CWLB was withheld at source. Therefore, your tax owing will be reduced accordingly on your tax return.
If you received an overpayment of any COVID benefits, you can deduct the overpayment in the year in which the benefit amount was received rather than the year in which the repayment was made. For the CWLB, the repayments should be reflected on the T4A slip.
The amount of CWLB received for the year will be shown in box 211 of the T4A slip, and the amount of CRB received will be shown in box 202.
Want to learn more? Connect with us on Facebook and Twitter for news and updates on tax return and UFile online tax software. Visit Let's Talk Tax to get accurate answers to all your questions about your tax return.
Presented by UFile's tax expert
Gerry Vittoratos
CPA Tax & Accounting
Now with FREE TELEPHONE SUPPORT.
(Long distance charges may apply.)
Privacy Statement Contact Us
© 2024 Thomson Reuters/Tax & Accounting. All rights reserved.