Due to the COVID-19 pandemic, the past two years have been challenging for many Canadians, and for the millions of Canadians who received pandemic-related income support benefits from the federal government, the challenges may continue when they file their 2020 and 2021 income tax returns.
To help you navigate Canada Emergency Response Benefit (CERB) overpayments, owing taxes due to benefits received, and how to pay back your income tax debt, check out our guide.
CERB Overpayments and Penalties: What We Know So Far
If you were mistakenly given the Canada Emergency Response Benefit (CERB) or were later found to be ineligible, you may receive notice of a CERB overpayment requiring you to repay some or all that you received.
Will I Owe Income Taxes Because of CERB?
If you received a government income support benefit such as the Canadian Emergency Response Benefit (CERB) or the Canadian Emergency Student Benefit (CESB), you may owe income taxes for the 2020 filing year.
What to Expect when Filing Your 2020 Income Taxes as a Recipient of the Canadian Government’s COVID-19 Income Support Benefits.
If you received the CERB, CRB, or another government income support benefit, that income must be reported for the year you received that benefit.
Understanding the CRA’s Targeted Interest Relief Program for CERB Recipients.
The Canada Revenue Agency (CRA) announced it is offering targeted interest relief for the 2020 income tax year to Canadians who received COVID-related income support benefits.
Could I Have a Canada Response Benefit (CRB) overpayment?
If you received the Canada Response Benefit (CRB), you may be subject to an overpayment or taxes owed due to a clawback put in place by the Canada Revenue Agency (CRA).
What options do I have for paying back CERB income tax debt?
If you owe money to the Canada Revenue Agency (CRA) but are unable to pay your debt, there are both informal and formal debt relief options you can consider.