CERB Clawbacks

There was Good News yesterday when the government decided that they will not be clawing back CERB from Self-Employed recipients who applied based on incorrect eligibility information.

For months Self-Employed individuals and political leaders have been putting pressure on the government to stop the clawbacks on these benefits. Parties in both camps of the fight to stop the clawbacks believed that citizens should not be punished due to faulty insight on the governments behalf. Thankfully the government agreed. That said that does not mean that ALL CERB clawbacks have been stopped. Thus far this only applies to those who are self employed. We will see in the coming weeks and months what the government will decide to do about the rest of the clawbacks.

Sadly, the original problem of CERB being taxable income has still not disappeared. Those that collected CERB will still have to pay taxes on it, however, how much tax you will pay on that comes down solely on your yearly income. Those in low income brackets while they will pay tax on that money, it could be significantly lower than those in higher tax brackets for the year. The government has said that people who received emergency benefits, as long as you made less than $75,000, wont pay any interest on taxes owed until April of 2022. So that is a little bit of happy news for anyone who owes on taxes for 2020.

With 2020 over, hopefully, 2021 will be a better year overall for everyone.

Published by coveryourassetsbooksandtaxes

I am a tax preparer and bookkeeper running my own company.

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