Finance Minister Chrystia Freeland announced Oct. 21 that Ottawa would wind down the CRB, along with Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS), as of Oct. 23.
While Ottawa withheld 10 per cent tax at source on all CRB payments, recipients may have to pay more tax on their CRB income at tax time. And anyone with net income above $38,000 in a calendar year will have to repay $0.50 of the benefit for every $1 of net income above the threshold. In addition, the benefits you don’t have to repay will be added to your other income to determine your overall tax due.
Be prepared – calculate your potential clawback and tax owing now to avoid a nasty surprise next spring.
Here’s an article from GlobalNews with more details on how to do that: https://globalnews.ca/news/8322709/crb-end-date-2021-taxes-clawback/