CRA says rare error in some tax slips lists repaid CERB as taxable – Business News – Castanet.net

CRA error over CERB

The Canadian Press – Mar 2, 2021 / 9:24 am | Story: 326610

The Canada Revenue Agency says some taxpayers who repaid COVID-19 related benefits in 2020 are getting incorrect tax slips.

The CRA’s website notes that people who repaid Canada Emergency Response Benefits before December 31, 2020 should not have to pay tax on those repaid amounts on 2020 tax returns.

But the CRA says that it is aware of some tax slips that wrongly list portions of the repaid benefits as taxable income.

The tax agency says there is a rare error in which the repayments are credited to a taxpayer’s T1 instalment account instead of their emergency benefits account.

The CRA says that taxpayers should call 1-800-959-8281 to fix incorrect tax slips.

The agency’s website says that repaid CERB amounts should be subtracted from the benefit amount on T4A slips, which are being issued until March 10.

The CRA says it is being proactive and moving the payments to the correct accounts, and that amended tax slips will be issued.

“These repayments can be properly and easily credited to the correct account,” said a CRA spokesperson in a statement.