How to report CERB payments received on my 2020 tax return?

It is important to note that this benefit is a taxable benefit and CRA did not withhold taxes at source, which means that you will be taxed on the full amount. Make sure to put some of this money aside to cover those taxes that will be owed back to the government when you file your 2020 tax return. One way to help reducing your tax owed is by contributing to your RRSP before March 1, 2021.

You will receive a T4A tax slip reporting your CERB income in Box 197. Claim this amount on line 13000 of your income tax return. If you were employed in 2020, the new T4 slip will break the employment income into periods that align with CERB payments periods. The purpose of the new T4 is to inform CRA of the CERB amount you have received while you were still working. Remember that you were eligible for CERB if your employment income during the same period did not exceed $1000.

If you end up in a situation where you had received CERB payments, yet you were not eligible for all or part of it, you should contact CRA COVID center at 1833-966-2099 to request a payment plan.