The CRA has begun sending out T4As to Canadians who received COVID-19 income benefits in 2020. This includes CERB, CESB, CRB, CRCB, and CRSB. These slips will reflect all income received from the government due to the pandemic.
Letters on CERB Ineligibility
Some people have also received letters stating that they were ineligible for the support they received. These individuals are required to pay back their benefits.
The CRA sent these letters to those who did not reach the prior income requirement for these benefits. In order to be eligible, you must have earned a net minimum of $5,000 in 2019 or in the 12 months leading up to your application. This means that some people who became eligible based on income earned in January and February of 2020, would have received these letters. The CRA did not have access to your 2020 income at the time of your application. Therefore, they could not confirm that you had hit the threshold required. Because of this, you may have received a letter when you are in fact eligible. When you file your taxes, the CRA will have your 2020 income information and will be able to confirm your eligibility.
Benefit Repayment Plans
The government has admitted that their wording was not as clear as it could have been around the income requirement. They realize that some people were unsure whether the $5,000 minimum was gross or net income and this affected some peoples’ decisions to apply. Because of this, the government has said that payment plans will be offered in an effort to reduce the strain of paying back the benefits. The benefit will also be interest-free.
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