Tax Help: CERB & CESB

As many Canadian businesses were forced to close their doors and later modify how they do business in a World during a global pandemic, Canadians struggled to make ends meet. The Canada Emergency Response Benefit (CERB) and Canada Emergency Student Benefit (CESB) were launched in March and May respectively to relieve some of the pressure. Employers deduct taxes prior to depositing their employees’ pay into their account. However, this was not the case with CERB and CESB benefits.

What does this mean? CERB and CESB are taxable benefits and so you may owe CRA some taxes next tax season if you have earned other income for the year. If you have made less than $13,229 during 2020 you will not have to pay taxes on your income, including CERB and CESB installments.

There are many factors that will affect taxes owing for folks who made over $13,229 in 2020 such as a change in your tax bracket. However, if your income has decreased in 2020 you may be eligible for child credits or GST credits you would have not qualified for previously. 

If you have received CERB or CESB payments, chances are you may be experiencing financial hardship and may find it difficult to put money aside for taxes you may owe in April. Contact us to find out what we can do to help.
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Do you have more questions about CERB and CESB? Contact Us.