If you received the Canada Emergency Response Benefit (“CERB”) or other COVID benefits in Canada, then you should know that they are treated as taxable benefits by the Canada Revenue Agency. What does that mean? It means that you are supposed to report the benefits you received as income on your Income Tax Return. CRA says they will be sending out T4A slips showing the income you received in benefits.
But pay attention to your T4A slip when completing your income tax return, because not all benefits are treated the same. In September of 2020 the CERB benefits were discontinued and replaced by three other benefits: 1. the Canada Response Benefit (“CRB”); 2. the Canada Recovery Caregiving Benefit (“CRCB”); and the Canada Recovery Sickness Benefit (“CRSB”)
The CRB, CRCB, and the CRSB benefits replaced the CERB benefits. They give income support to employed and self-employed persons who have been directly affected by COVID-19 and do not quaify for Employment Insurance benefits. For more information on these benefits click the appropriate link below.
Click to learn more about CRB benefits
So how are they treated differently for income tax purpose? The latter three benefits had tax of 10% deducted at the source but the CERB benefits had no tax deducted. So make sure you look for the box on your T4A that shows how much tax was deducted. I don’t do tax preparations for people myself, but if you use a tax preparer or a tax software program, they should pick it up.
Oh, and the Canada Revenue Agency recently announced that the CRB, CRCB, and CRSB benefits have been extended to September 25, 2021 so you can still apply now. Click below for informtion on how to apply. Beware of companies that will charge you for applying for benefits for you. Some companies charge up to one-third of the benefits they get you. You can save that fee by appying for the benefits yourself. I’ve provided the links below for information on how to apply.
Click here for information on how to apply for CRB benefits
Click here for information on how to apply for CRCB benefits
Click here for information on how to apply for CRSB benefits
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