How Will COVID-19 Benefits Affect Your 2023 Taxes? 

Image of Canadian tax forms

Income taxes can be confusing on their own, but add in time off-work, benefits, sick leave due to COVID-19, and it’s no wonder so many Vancouverites are left with a lot of questions. It’s important to be aware of how federal COVID-19 benefits affect your taxes; knowing how much money you might owe in a year’s time has an impact on how you spend it now. If you feel overwhelmed or confused, there’s no need to fret. This article will break down exactly how benefits received will impact your personal income tax filing. It will also explain the slight change to the way of declaring work-from-home expenses that was introduced in the last year.

Are COVID-19 benefits considered taxable income?

COVID-19 benefits are considered taxable income, and those who received COVID-19 benefits in 2023 will be taxed accordingly. You will be expected to enter the benefit amount received on your 2023 income tax and benefit return. By the end of February 2023, a T4A tax slip will be mailed to you.

The Government of Canada COVID-19 support benefits are as follows:

  • Firstly, there’s the Canada Recovery Benefit (CRB);
  • Secondly, there’s the Canada Recovery Sickness Benefit (CRSB);
  • And lastly, the Canada Recovery Caregiving Benefit (CRCB).

If you received benefit payment labeled as any of the above, the Government of Canada has already withheld a 10% tax.

What to do if you do not receive a T4A slip:

A tax slip will be mailed to the address you have attached to your CRA account. If you have moved or have not received your T4A slip, it will be accessible through your CRA My Account online. If you are still having difficulty viewing your T4A tax slip, please contact the CRA.

$100 increase in declaration of work-from-home expenses:

Last year, the newly launched flat-rate method allowed remote workers to claim up to $400 in remote working expenses as a tax deduction. This year, this amount has increased to $500. This temporary flat-rate method does not require workers to provide any receipts or proof from employers. If your work has been impacted by COVID-19 and you’ve been forced to begin working remotely, we encourage you to make this claim!