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With the deadline to file your taxes for the 2020 tax year fast approaching, you may be wondering if you have everything you need to take to your tax specialist. Documents such as receipts, statements of assets and liabilities, and T4s are all examples of paperwork that you may need to file your income taxes. But are there any other slips you might need?
The year 2020 was unlike any other year we’ve ever experienced, particularly from a financial standpoint. The COVID-19 pandemic has left millions of Canadians in dire financial predicaments, requiring assistance from the government to help cover life’s ongoing expenses. One such program that many Canadians applied for and received benefit payouts was the Canada Emergency Response Benefit (CERB), which paid out $2,000 for a 4-week period to those who qualified.
If you received CERB or other EI benefits, you will need a T4E slip to file your taxes.
Check out if your COVID-19 benefits are taxable.
What is a T4E Slip?
The T4E is a Statement of Employment Insurance and Other Benefits slip that is issued for tax purposes. If you received Employment Insurance (EI) or EI-funded financial help while part of an employment program, or must make a repayment of EI benefits, you will receive a T4E slip that will be needed when you file your taxes.
Residents in Quebec who fall under any one of the above-mentioned categories will receive a T4E(Q) slip.
These slips will outline the gross amount of benefits paid out during the 2020 tax year, including COVID-19-related financial assistance benefits like CERB. They also show how much income is tax deducted and any amounts paid back towards any overpayments received.
T4A Vs T4E Slips
What is the difference between the T4A and T4E tax slips?
The T4E slip is specifically for any EI, CERB (received from Service Canada) or other benefits that you received during the tax year in question. The T4A, on the other hand, is more of a “catch-all” tax slip that includes various income and deductions.
Generally speaking, you’d need a T4A slip if you must pay amounts related to employment or self-employment. If you’ve received any benefit payments, you’ll need a T4E slip.
Find out the difference between a T4 and a T4A slip.
Understanding Your T4E Slip
You’ll notice plenty of boxes on your T4E slip. Here’s what they mean:
- Box 7. Repayment Rate – If you get a rate of 30% in this section, it means that you might be required to make a repayment for benefits received.
- Box 14. Total Benefits Paid – The amount here is entered on Line 11900 and includes amounts shown in Boxes 15, 17, 18, 33, and 36.
- Box 15. Regular and Other Benefits Paid – The amount shown here includes work-sharing benefits. It also includes income benefits under the Employment Insurance Act. Both these amounts are included in Box 14.
- Box 17. Employment Benefits and Support Measures Paid – This amount includes EI financial assistance paid out while you were a part of an employment program and is included in Box 14.
- Box 18. Tax Exempt Benefits – Applies to Indians under the Indian Act. It is included in box 14.
- Box 20. Taxable Tuition Assistance – This amount shows any taxable tuition assistance received and is included in Boxes 14, 17, or 33.
- Box 21. Non-taxable Tuition Assistance – This amount shows any non-taxable tuition assistance received and is also reported on Line 25600.
- Box 22. Income Tax Deducted – This amount shows any tax withheld from your benefit payments and is reported on Line 43700.
- Box 24. Non-Resident Tax Deducted – The amount in this box is inputted on Line 43700.
- Box 26. Overpayment Recovered or Repaid – Any EI benefits amounts overpaid that must be repaid are displayed here and included in Box 30.
- Box 27. Reversal of Income Tax Deducted – This amount displays the reversal of tax deducted from a repaid amount and is included in Box 30.
- Box 30. Total Repayment – This amount represents the total of Boxes 26 and 27 and is reported on Line 23200.
How to Report Your T4E on Your Tax Return
If you received any CERB payments in the 2020 tax year, they will be included in Box 14 of the T4E, which will also include any other employment insurance benefits you received.
When you receive your T4E, review it carefully to ensure that all amounts are correct. Further, make sure that any repayments that were made before December 31, 2020 are included.
Take the following steps to report your T4E on your income tax return:
- Locate the total benefits paid amount in Box 14.
- Subtract the amount in Box 14 from any amount in Box 18 if you are ineligible to receive tax exempt benefits within the Indian Act.
- Input that amount on line 11900 of your tax return.
Check out the benefits of filing your taxes early.
What if the information on my T4E is incorrect?
Where can I get my T4E Slip?
Which box will show my EI benefits and CERB payments received?
It’s important to file your taxes on time in order to avoid any penalties and to collect any returns that may be coming to you. Make sure that you have every form you need — including your T4E if you collect EI or CERB in 2020 — to ensure your tax return has been filed appropriately.
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