(0) William, 31-years old, received Canada Recovery Benefits (CRB) in 2021 during the COVID-19 pandemic. He reported $6,000 of income on his 2021 return. In 2022, William received a Letter of Redetermination stating he was overpaid $2,000 of CRB in 2021. William promptly paid the $2,000 back in 2022.

Which statement is True?

1. William must do an adjustment to his 2021 return to remove $2,000 in CRB income

2. William can claim a deduction on his 2022 return for $2,000

3. William can claim a deduction on his 2021 return (using form T1B)

4. William can choose option 2) or 3)