Even though the major COVID‑19 income support programs ended years ago, understanding their tax treatment remains important—especially if you’ve repaid any over‑payments or received retroactive amounts.
1. All COVID‑19 Benefits Count as Taxable Income
Support programs like the CERB, CRB, CRCB, CRSB, CWLB, CESB, and others issued through Service Canada or CRA were considered taxable income. Recipients received T4A (or T4E for EI/CERB) slips, and must include these amounts on their federal tax returns for the year the benefit was received :contentReference[oaicite:0]{index=0}.
2. Implications in the 2025 Tax Year
If you received CERB, CRB (or similar) in 2020 or 2021, the income was reported on your T4A slip for those years. Even in 2025, those amounts are still part of your historical taxable income and have already been processed by CRA :contentReference[oaicite:1]{index=1}. There is no need to report them again—unless you received late T4A adjustments or repayment slips.
3. Repayments Can Reduce Taxable Income
Some individuals were required to repay benefit amounts (e.g., overpayments). CRA permits a deduction for repayments made in 2023 or later, but only in the year the repayment occurred :contentReference[oaicite:2]{index=2}. If you repaid in 2024 or 2025, you may claim it on your 2024 or 2025 T1 return (line 23200) to reduce your taxable income accordingly.
4. CRA Validation & Appeals for COVID‑19 Benefits
CRA continues to review certain COVID‑19 benefit files. If you received a notice to verify eligibility, you could submit documentation or appeal if denied. These processes were active as recently as April 2025 :contentReference[oaicite:3]{index=3}.
5. No Special Tax-Free Status Beyond 2020
Despite early talk of making CERB non-taxable, these benefits were always taxable and reported as such. There was never any official CRA–legislated exemption retroactively making them tax-free :contentReference[oaicite:4]{index=4}.
6. Practical Tips for Your 2025 Tax Filing
- Keep your old T4A/T4E slips: These documents show your COVID benefit amounts for 2020–2022.
- Check for repayment slips: If you repaid any benefits, look for Box 201 on your T4A for that year and deduct the amount on line 23200 :contentReference[oaicite:5]{index=5}.
- Don’t re-report benefits already filed: Only report COVID‑19 amounts once in the year they were received or repaid.
- Monitor CRA correspondence: Especially review notices asking for supporting documents or second reviews of your benefit claim :contentReference[oaicite:6]{index=6}.
- Consult a tax professional: If you’re repaying large sums or disputing CRA reassessments, expert advice is worthwhile.
7. Final Word
While CERB, CRB, and other COVID‑19 benefits are no longer being issued, their tax treatment still matters. These amounts were fully taxable when paid, and any required repayments yield deductions only in the year repaid. For most taxpayers, these matters were settled in earlier tax years. But if you’re handling repayments or CRA verifications in 2025, make sure to claim the appropriate deductions and retain documentation.
