The Canada Income Company says some taxpayers who repaid COVID-19 associated advantages in 2020 are getting incorrect tax slips.
The CRA’s web site notes that individuals who repaid Canada Emergency Response Advantages earlier than December 31, 2020 mustn’t should pay tax on these repaid quantities on 2020 tax returns.
However the CRA says that it’s conscious of some tax slips that wrongly record parts of the repaid advantages as taxable earnings.
The tax company says there’s a uncommon error through which the repayments are credited to a taxpayer’s T1 instalment account as a substitute of their emergency advantages account.
The CRA says that taxpayers ought to name 1-800-959-8281 to repair incorrect tax slips.
The company’s web site says that repaid CERB quantities must be subtracted from the profit quantity on T4A slips, that are being issued till March 10.
The CRA says it’s being proactive and shifting the funds to the right accounts, and that amended tax slips shall be issued.
“These repayments may be correctly and simply credited to the right account,” mentioned a CRA spokesperson in an announcement.
Coronavirus: CERB recipients deemed ineligible after messaging mix-up received’t be pressured to repay
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