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  • Writer's pictureDaniel Gray CPA

CRA kinder to taxpayers than IRS when considering taxation of covid relief

For tax year 2021, individuals cannot claim to IRS the COVID-19 medical condition travel exception to exclude any days of presence in the United States for the purpose of the “substantial presence test.” However, days of presence in the United States in 2020 that were excluded for tax year 2020 may impact the application of the “substantial presence test” for tax year 2021. See Rev. Proc. 2020-20, 2020-20 I.R.B. 801, available at www.irs. gov/irb/2020-20_IRB#REV-PROC-2020-20


In contrast, individuals MAY claim to CRA Canada COVID-19 relief since CRA extended last tax year's administrative relief that was provided to Canadian-resident cross-border workers to also apply to 2021. See VII at https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/guidance-international-income-tax-issues.html


CRA doesn't tax IRS EIP Covid relief Stimulus payments

IRS does tax CRA Covid relief CERB payments

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