Who is eligible to apply for the CRB?

In this post we will quickly review some of the most important aspects of eligibility for the new Canada Recovery Benefit, also known as CRB, a government financial assistance program that has recently been put in place to replace CERB for those who do not qualify for EI.

How Know If You are Eligible for CRB?

To receive the CRB, you must meet all of the following conditions that we will show you during the 2-week period:

1. You were either not working or have a 50% or more reduction in your income because of COVID,
2. You have not applied or received any of the listed benefits like CRSB, CRCB, EI, QPIP, Short Term Disability or Workers Compensation.
3. You are not eligible for Employment Insurance.
4. You reside and were in Canada.
5. You’re at least 15 years old or older.
6. Your gross income last year was at least $5,000 or your income was $5,000 within the 12 month period before applying for CRB, this income can include employment, self employment and maternity/paternity benefits.
7. You did not quit your job or reduce your hours voluntarily after September 2020.
8. You were actively looking for work.
9. You did not turn down reasonable work during that time.

Can you work then and still receive CRB?

Yes, you are eligible to receive CRB even if you are working providing you meet all of the conditions we previously mentioned. However, you need to be cautious about how much you spend and save. For every dollar that you earn in net income above $38,000 during the calendar year, so January 1st to December 31st, $0.50 of the CRB you received will have to be repaid.

As an example, assuming you earned $40,000 in 2021, that is $2,000 above $38,000 threshold. Therefore, you will need to repay $1,000 in CRB benefits when you file your taxes next year.

Who Verify your Eligibility?

The CRA will check to see if you are eligible for the CRB. Individuals who are found to have made false claims on purpose may face additional penalties, including fines and possible prison time. Go to the CRA’s Leads program to report any alleged abuse.

If any information is missing from your application, you may be required to provide additional documentation in order to complete the procedure and validate your application.

What types of income count towards the $38,000 limit?

Any income that would be reported on Line 23600 of your tax return count towards the $38,000 limit.

Examples of this include: Employment Income, Self employment income, RRSP Withdrawals,Rental Income, RRIF Income, Any CERB, CRSB, CRCB payments but DOES NOT INCLUDE THE CRB income. Keep in mind the $38,000 is the Net Income amount – your income after deductions.

Some common examples of deductions that you might be claiming on your taxes that reduce your net income are: Child care expenses, Union or professional dues, support payments, etc. There are many other deductions that you might be eligible for.