2021 CRB Payments

[Kaleem]

I received CRB benefit payments for May to Sep 2021 periods when I was jobless during this period due to COVID. However, CRA did not process the application till Aug 2022 and payments were released in Aug 2022. Since these payments are income tested i.e. to return 0.5 dollar for each dollar earned above 38000, these should be reported for the 2021 year when the income testing criteria should apply. However, CRA issued T4A for tax year 2022 since payments were released in 2022. Since I was earning in 2022, reporting CRB payments on 2022 tax return will result in repayment of all CRB benefits since I had income well above 38000 in 2022. To my understanding, CRB for periods in 2021 should be reported on 2021 tax return by amending the return and not on 2022 tax return. 

I called CRA 3 times and strangely the agents were not able to answer. One called it benefit and one income but unable to answer which year these should be reported. They put me on hold 3 times for checking and disconnected my 1 hour long call 3 times.

So should 2021 CRB period payment made in 2022 be reported in 2021 return by amending 2021 tax return or be reported on 2022 income tax return. Any help is appreciated. 

[Geo123]

Hello Kaleem,

To report in 2021 :

Go to Interview >> Losses of prior years, carrybacks >> 1B - Request to deduct federal COVID-19 benefits repayment in a prior year <New|

 >>Amount of federal COVID-19 benefits repayment to be deducted on your 2020 and/or 2021 return (cannot be more than the total federal COVID-19 benefits received).

To be deducted on your 2021 return  [$ Amount ]