TurboTax wants to ensure accuracy with the information we have provided in this article, all content will be updated as we learn more from the Canada Revenue Agency and the Government of Canada.
Which benefits were applicable for the one-time extra benefit payments?
GST/HST Tax Credit
The federal government provided a one-time extra benefit payment, as part of the tax-free quarterly payment, to help offset all or part of the GST or HST they pay.
Who was eligible for the one-time payment?
Like eligibility for the credit itself, there were eligibility requirements for this one-time payment as well. If you were eligible for the quarterly GSTC based on your 2018 personal income tax return, you would have been eligible for an additional one-time payment in May 2020, depending upon your adjusted family income.
Even those whose income was too high to qualify for the quarterly payments may have received this benefit payment depending upon their adjusted family income.
How did you apply for the one-time payment?
There was no application as it was based on your 2018 income tax return and it being filed. Like the quarterly payments, this was managed and calculated by the CRA, and if you were eligible, you got the payment automatically.
The payment is not a taxable benefit, so you do not need to report it on your 2020 income tax return.
Canada Child Benefit (CCB)
The federal government provided a one-time extra payment of $300 per child for the 2019-2020 CCB benefit year. This benefit was to assist Canadians in the care and upbringing of children that were living with them that they were primarily responsible for.
Who was eligible for the one-time payment?
Those families who were already receiving the monthly benefits received the extra payment as part of their May 2020 CCB payment.
Families with children under the age of 18 who did not receive the monthly benefit, would be eligible for the one-time payment in May. They may have received only a portion of the benefit, as it was dependent upon their income levels.
How did you apply for the one-time payment?
There was no application. If you were eligible for the benefit, you would have got the payment automatically.
The one-time CCB payment is not taxable, so you do not need to report it on your 2020 income tax return.
For more details on income support and other benefits as part of the Federal Government’s Economic Response Plan for COVID-19, visit this TurboTax link on all COVID-19 response measures.
See also our COVID-19: Tax Info Centre, from our TurboTax Support team, answering many FAQs on this topic and more.
