In response to the COVID-19 pandemic, the federal government implemented a variety of non-taxable and taxable benefit programs over 2020. For the taxable benefits, withholding tax was not applied to the early program, and even when applied to later programs, the amount withheld may not have been sufficient to cover your actual tax due once added to your other income for the year.
This table is designed to help you understand the tax treatment of each program, and whether you may need to dip into your cash reserves to cover taxes that may be due when you prepare your 2020 tax return.
Program
|
Eligibility and Amount
|
Tax treatment
|
2020 Dates
|
Canada Emergency Response Benefit (CERB)
|
- Unemployed or reduced employment due to COVID-19
- $500/week up to 28 weeks; maximum of $14,000
|
Taxable,
no withholding
|
Ended
Oct 3
|
Canada Emergency Student Benefit (CESB)
|
- Post-secondary student unemployed or with reduced hours due to COVID-19
- $1,250/4-week period up to 16 weeks; maximum of $5,000
- Post-secondary student with a disability or dependants unemployed or with reduced hours due to COVID-19
- $2,000/4-week period up to 16 weeks; maximum of $8,000
|
Taxable,
no withholding
|
Ended
Aug 29
|
Canada Child Benefit (CCB)
|
- Families already receiving the CCB
- $300 one-time payment
|
Non-taxable
|
Paid in
May
|
One-time payment for seniors
|
- Seniors eligible for the Old Age Security pension received $300
- Seniors eligible for the Guaranteed Income Supplement received an additional $200
|
Non-taxable
|
Paid in
July
|
Persons with disabilities
|
- Holders of a Disability Tax Credit certificate, beneficiaries of the CPP or QPP disability pension or disability supports from Veterans Affairs Canada
- $600 one-time payment
|
Non-taxable
|
Scheduled to be paid on Oct 30
|
Canada Recovery Benefit (CRB)
|
- Workers not eligible for Employment Insurance, including self-employed
- $500/week for up to 26 weeks
|
Taxable,
10% withholding
|
Began
Oct 12
|
Canada Recovery Caregiving Benefit (CRCB)
|
- Caring for child under age 12 or supervising a family member
- $500/week; up to 26 weeks; maximum of $13,000
|
Taxable,
10% withholding
|
Began
Sep 27
|
Canada Recovery Sickness Benefit (CRSB)
|
- Unable to work if sick or need to self-isolate due to COVID-19, or have an underlying health condition that puts them at greater risk of getting COVID-19
- $500/week up to 2 weeks; maximum of $1,000
|
Taxable,
10% withholding
|
Began
Sep 27
|
Employment Insurance - COVID-19 (EI)
|
|
Taxable, formula for withholding
|
Began
Sep 27
|
To find out more about how COVID-19 benefits could impact your taxes, please visit: https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/covid19-taxes.html
