T2 Schedule 1: COVID-19 Government Assistance

Updated: 2022-08-12

According to page 26 and the bottom of page 35 in the T2 guide:

  • On Schedule 125, you must report income from COVID-19 programs using the GIFI code 8242 - Subsidies and grants; and
  • On Schedule 1, you must clearly identify each of the COVID-19 subsidies received on line 605 (for example, “CEWS $15,500”) with a corresponding “0” entry on line 295.

To make these entries in TaxCycle T2:

  1. Enter the amount of the COVID-19 assistance on Schedule 125 using GIFI code 8242.
    Screen Capture: 8242 on Schedule 125
  2. On line 605 of Schedule 1, enter the name of COVID-19 subsidies received with the amount of the assistance in parentheses.
  3. Leave line 295 on Schedule 1 blank or zero. The amount of COVID-19 assistance entered on Schedule 125 is automatically included in the net income at line A at the top of Schedule 1; therefore, you do not need to add back the amount on line 295.
  4. Sign off the review message to approve the missing amount.
    Screen Capture: S100 lines 605 and 295
  5. TaxCycle will automatically transmit a value of zero for line 295 on Schedule 1 when line 605 contains a description and line 295 is blank.