CRA’s new strategy to speed up the repayment process
By EG Manilag, Staff Writer
Beginning May 11, the CRA will offer an online way to return or repay Canada Emergency Response Benefit or CERB payments.
This repayment option of CERB is for those individuals who no longer meet the eligibility criteria “for the 4-week period in question,” but are still receiving CERB payments. This could happen if these individuals earned employment or self-employment income earlier than expected; if they applied for CERB but later realized that they are ineligible; and if they receive payment both from the CRA and Service Canada. Using CRA My Account, individuals who no longer meet the eligibility requirement can now return or repay their CERB payment online.
Another way to repay the CERB is through mail. Make sure to follow the appropriate steps in writing the mailing address, further instructions can be found at Canada’s official website (Canada.ca). If you still have the unused original CERB cheque, you can also send it through mail. Just be sure to include the reason why you want to return the cheque (i.e. overpayment or not entitled) and your Social Insurance Number or Temporary Tax Number—further mailing instructions can still be found on the website.
According to Canada’s website, the CERB is taxable. This means that you will receive a T4A tax slip based on the amount of CERB payment you receive. However, if you repay the CERB, you would not be taxed and would not receive a T4A tax slip from the CRA. Furthermore, to avoid improper issuance of slips, “you need to repay your CERB before December 31, 2020.” If you need more time to repay, do not hesitate to contact the CRA. For more info, visit the website.