Did you receive CERB payments as part of the government’s COVID benefits program? Are you unsure if you are eligible to keep the funds?
The CRA has indicated that if you are not eligible for any of the CERB payments you received, you should return the payments before December 31, 2020:
- If you return a payment before December 31, 2020 there will be no impact on your 2020 taxes ;
- If you return a payment after December 31, 2020 you will be taxed on the full amount received in 2020. The adjustment for the returned payment will be made in the subsequent tax year.
Please visit the CRA website (click here) to determine if you need to repay the CERB payments you received and directions on how to return the funds to the correct government entity.
If you require further assistance please contact your tax advisor at Cameron Izard Snell LLP for more information.