Interest Relief deadline April 30, 2022 in next update?

I am just testing the CLetter - Client Letter for the extension deadline of April 30, 2022 for income tax debt announced on February 9, 2021. I don’t see it when I enter CERB in Box 197 and income up to $75,000. Will it be in the next update?

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EI Benefits included as Eligible Criteria. Will the Client Letter reflect this if appropriate?

Personal income tax

Interest relief if you received COVID-19 benefits

On this page

Eligibility criteria

Late-filing penalties still apply

Eligibility criteria

Interest relief will be given to individuals who meet all of the following:

  1. Your total 2020 taxable income was $75,000 or less

  2. You received at least one COVID-19 benefit in 2020:

  • Canada Emergency Response Benefit (CERB)

  • Canada Emergency Student Benefit (CESB)

  • Canada Recovery Benefit (CRB)

  • Canada Recovery Caregiving Benefit (CRCB)

  • Canada Recovery Sickness Benefit (CRSB)

  • Employment Insurance (EI) benefits

  • Provincial or territorial emergency benefits

  1. You filed your 2020 income tax and benefit return

  2. You have a balance owing for your 2020 taxes

You need all the above to be eligible for interest relief.

If you do not meet the criteria, review other options in Taxpayer relief provisions.

If you meet all eligibility criteria and have filed your 2020 tax return, the CRA will automatically apply interest relief on your 2020 taxes owing.

You will not have to pay interest on any amount owing from your 2020 taxes until April 30, 2022.

Interest relief only applies to your 2020 taxes owing and not on previous or other debts with the CRA.

Late-filing penalties still apply

File your tax return by the due date. If you file late, you will be charged a 5% late-filing penalty on top of what you already owe, plus an additional 1% for each month (up to a maximum of 12 months).

Interest will start after April 30, 2022 on any amount owing for the 2020 tax year.

Yes, I apologize for my choice of words for my topic. It should have been “Interest Relief Deadline” rather “Extension Deadline”. I am sure there is a way to edit the topic but I did not find it. Thank you for outlining all the criteria so there is no misunderstanding. I was just wondering if this deadline would be added to the next Client Letter update or whether I would need to code it in myself for our office if we wish to address it.

Nothing to apologize for. I recently listened to a tax webinar. The presenter commented that your tax software should pick this up. I too tested TaxCycle. The Client Letter was not affected. This is a significant benefit for some individuals.

As I understand it, the relief will be automatically applied and it will not affect benefits like the GST/HST credit or Canada child benefit.

I am hoping to see a change to the Client Letter, …

If not, and you are comfortable editing your CLetter template, I’m attaching the snippet I made.

I first cut out the entire “Refund/Payable” section of the letter (from {{# T1.RefundBalanceOwing }} to {{/ T1.RefundBalanceOwing }}), and then, where it used to be I typed in {{>COVID 19 Interest Relief Snippet}}

And I then created a snippet called “COVID 19 Interest Relief Snippet” consisting of the coding in the PDF attached. Feel free to use it, or change it or ignore it :slight_smile:

COVID 19 Interest Relief Snippet.pdf (133.7 KB)

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To clarify, anyone on parental/maternal EI benefits in 2020 would also qualify for the interest relief?

That’s wonderful! Thanks so much! :grinning:

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Awesome and many thanks, …

It’s messy, but since it is just for this year I didn’t want to spend any time cleaning it up and making it “pretty”.

I’m sure if TaxCycle comes out with one it will be much cleaner and shorter!

But it works and that’s good enough for now!

Just to let you all know. We are aware of the request here and are looking at how to best manage it, whether in the template or changing the calculated payment due date field in the return.

As a heads up, I had one client where TaxCycle defaulted to a payment date of 2022 even though she didn’t receive any COVID payments. She did receive EI mat leave benefits, but my read of the CRA’s criteria suggests she doesn’t qualify for the extension. It wasn’t COVID support, it was “regular” EI.

If only mat leave benefits were reported on the T4E slip, then Box 14 should equal the amount reported in Box 37 and the payment date would remain as April 30, 2021. But if the amount in Box 14 is greater than the totals of Boxes 15, 17, 18, 33, 36, and 37, then TaxCycle assumes that the remaining amount was a COVID payment and changes the payment date to 2022.