CERB repayment for the self-employed and interest payment relief

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CERB repayment for the self-employed and interest payment relief

Apr 13, 2021 by System

The Canadian government recently made a significant announcement about relief measures related to CERB payments received by self-employed individuals and interest payable by those having received COVID-related benefits. Read on for details.

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CERB repayment for the self-employed

In this recent announcement, the federal government stated that self-employed individuals whose net (after expenses) self-employment income was less than $5,000 and who applied for the CERB will not be required to repay the CERB as long as their gross (before expenses) self-employment income was at least $5,000 and they met all other eligibility criteria. Under the old criteria, individuals were required to have at least $5,000 of net self-employment income in either 2019 or 2020.

The CRA and Service Canada will return any repaid amounts to individuals who have already voluntarily repaid the CERB and who meet this new criterion.

Interest relief for income tax balance due

The government also indicated that individuals who have a balance owing on their 2020 tax return and who have received benefits (see list below) related to the COVID-19 pandemic in 2020 will not be required to pay interest on that balance until April 30, 2022, as long as their taxable income is $75,000 or less.

The benefits that can make you eligible for the interest relief are the following:

Canada Emergency Response Benefit (CERB);
Canada Emergency Student Benefit (CESB);
Canada Recovery Benefit (CRB);
Canada Recovery Caregiving Benefit (CRCB);
Canada Recovery Sickness Benefit (CRSB);
Employment Insurance benefits; or
similar provincial emergency benefits.

Please note that all these benefits are taxable on your tax return.

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UFile's tax expert Gerry Vittoratos
Presented by UFile's tax expert
Gerry Vittoratos
CPA Tax & Accounting