Did you receive CRB last year? How to know if you’ll take a hit at tax time
Don’t panic if you owe taxes on your CRB; there’s plenty you can do to soften the blow
If you’re one of the many Canadians who relied on the Canada Recovery Benefit (CRB) between 2020 and 2021, you may be wondering about what happens come tax time.
CRB provided those who couldn’t claim employment insurance, but had still lost out on at least 50 per cent of their wages due to COVID, with financial support, totalling more than $28 billion between September 2020 and October 2021.
But unlike its predecessor, the Canada Emergency Response Benefit (CERB), with CRB, the federal government decided to withhold 10 per cent in tax upfront. While that means many won’t have to worry about settling a tax debt this spring, others may still be in for an unwelcome surprise when they do their taxes.
That’s because the government’s income limit means it’ll be clawing back some of that money from Canadians who earned more than $38,000 in 2021.
That $38,000 limit, however, excludes any CRB benefits you received as well as payments from a registered disability plan or money from the Canada Child Benefit and GST/HST credit.
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How to know if you owe more taxes
If you did have other sources of income, it’s likely you’re going to owe some money back.
For those who received CRB benefits in 2020, come tax time, the Canada Revenue Agency (CRA) will issue you a T4A (or RL-1 for Quebec residents) again this year. If you only started claiming CRB in 2021, once tax time approaches, you should receive your form in your CRA My Account.