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Canada: Proposed relief for employment insurance recipients (COVID-19)

Canada: Proposed relief for EI recipients

The Department of Finance has proposed legislation that would allow employment insurance (EI) recipients to claim child care and disability support deductions as coronavirus (COVID-19) income support recipients.

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The proposed legislation would temporarily allow Canadians receiving EI and Quebec parental insurance plan (QPIP) benefits to make the same claims for child care expense and disability support deductions.

EI recipients would be able to claim child care expenses and the disability support deductions against their income from regular EI benefits (including EI special benefits) and QPIP benefits for 2020 and 2021.

Background

EI and QPIP recipients are currently unable to deduct child care and disability support expenses against their EI and QPIP income. However, current law allows recipients of the Canada emergency response benefit (CERB) and other COVID-19 emergency income to deduct these expenses against the income they receive from such government assistance.

The child care expense and disability supports deductions generally provide tax relief (subject to limitations) for taxpayers that have incurred these expenses in order to earn employment or business income, pursue education or perform research.


Read a January 2021 report prepared by the KPMG member firm in Canada

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