The recently implemented Canada emergency response benefit (CERB) has provided over a million Canadians with an essential source of income during rocky economic times.
As unemployment rates have skyrocketed, this CERB benefit has given many Canadians the ability to stay afloat and make ends meet ends meet, a great boost for a hurting economy right now. In this article, I’m going to point out two things Canadians ought to be aware of with respect to this benefit as you approach tax filing deadlines.
At first, and perhaps the most important thing, Canadians ought to consider with the CERB is the fact that this benefit is a taxable one.
The government has stated it will not withhold taxes from this benefit, so putting aside money to pay the Canada Revenue Agency (CRA) when the time comes is of upmost importance for those taking the benefit. Nothing is free in this day and age, so ensuring you've covered all your bases before spending the entirety of a CERB payment is a good idea.
The second thing Canadians should keep in mind with this benefit is the eligibility criteria. Paying back benefits one receives, if one does not meet the eligibility criteria for sure payments, is important to do, as the Canadian government has announced it will crack down heavily on those that have unduly taken advantage of these benefits.
Avoiding interest and penalties prior to this year's tax filing deadline ought to be a top priority for those ineligible recipients of this benefit.
Invest wisely, my friends.
