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.

1000

Related content

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

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal