Canada Emergency Response Benefit

vishalpatelz

Hello folks,

I hope you all staying and keeping safe individually and your loved ones too,
I am a student here, and I have a confusion about CERB, please guide me if you have the information.

link: https://www.canada.ca/en/services/benefits/ei/cerb-application.html

the only question I have is, what amount I have to pay back to the government since it says taxable? please advise me

Thank you.

FlamesRunner

Oh, the CERB. Don't consider this legal advice as (just a warning) -- but here's how it works in a nutshell:

• You have lost your job due to COVID-19 related reasons where you have not resigned
• You are 15 or older, and made at least $5,000 within the last year

Then, you may qualify for a $500/week payment for 16 weeks.

The tax implications are usual -- this counts as income, so depending on your current revenue, the amount of tax could vary from a small amount to quite a bit. It really depends.

vishalpatelz

@FlamesRunner said:
Oh, the CERB. Don't consider this legal advice as (just a warning) -- but here's how it works in a nutshell:

• You have lost your job due to COVID-19 related reasons where you have not resigned
• You are 15 or older, and made at least $5,000 within the last year

Then, you may qualify for a $500/week payment for 16 weeks.

The tax implications are usual -- this counts as income, so depending on your current revenue, the amount of tax could vary from a small amount to quite a bit. It really depends.

As a student I am earning less than $30000 a year,and I did applied but now the question is for every 2k I will receive what amount I might have to pay back next year in tax?

Thanks bud!

Unbelievable

When I need financial advice that will significantly affect me, I turn to let- rather than contacting a government agency or advocacy group. Seriously call a tax lawyer that understands your student status and entitlements

FlamesRunner

@vishalpatelz said:
As a student I am earning less than $30000 a year,and I did applied but now the question is for every 2k I will receive what amount I might have to pay back next year in tax?

Thanks bud!

You are unable to apply for the benefit if you are still employed, or if you resigned from your previous position voluntarily. If you do qualify, your tax amount is based on your income in 2020 plus any amount received from the CERB. Your tax amount, as I said, will vary.

Do not post any personal information. As @Unbelievable said, I highly recommend you see someone qualified. Hell, you're a student -- yout institution may very well provide free tax advice. Take advantage of it.

deank

A really wrong place to get advice for this. Like @Burningrunner says, you are a student. Thus, you should have a free access to some advice within your institution.

vishalpatelz

Thanks, everyone!

I will contact my college!

deank

As a Canadian, I did get the emergency business aid fund which is 40,000 CAD. It's given to small businesses no questions asked and I am asked to repay it in 3 years.

But only 30,000 CAD is required to be repaid. 10,000 CAD is forgiven if the rest is paid.

SplitIce

@deank that actually sounds like a good way to stimulate the economy.

deank

The government kind of has to do this for several reasons.

1. Local governments do not want to forgive any taxes especially property tax. Right now, it is "deterred" but not forgiven. One has to pay eventually.
2. Landlords do not want to forgive or even deter any rents.
3. Small businesses are collapsing fast. Initially, the requirement for this fund was any businesses making 50,000 ~ 1 million annually. But they lowered the minimum to 20,000 CAD. Even small corner stores should be qualified now. But that change came in very recently only after a lot of mom & pops stores shut down already.

If you want to read it, just google "Canada Emergency Business Account (CEBA)".

vishalpatelz

@deank said:
The government kind of has to do this for several reasons.

1. Local governments do not want to forgive any taxes especially property tax. Right now, it is "deterred" but not forgiven. One has to pay eventually.
2. Landlords do not want to forgive or even deter any rents.
3. Small businesses are collapsing fast. Initially, the requirement for this fund was any businesses making 50,000 ~ 1 million annually. But they lowered the minimum to 20,000 CAD. Even small corner stores should be qualified now. But that change came in very recently only after a lot of mom & pops stores shut down already.

If you want to read it, just google "Canada Emergency Business Account (CEBA)".

You have any information for non business personnel, lets see I have got $2k, how do I calculate what amount I may have to payback?

Thanks

Clouvider

@vishalpatelz said:

@deank said:
The government kind of has to do this for several reasons.

1. Local governments do not want to forgive any taxes especially property tax. Right now, it is "deterred" but not forgiven. One has to pay eventually.
2. Landlords do not want to forgive or even deter any rents.
3. Small businesses are collapsing fast. Initially, the requirement for this fund was any businesses making 50,000 ~ 1 million annually. But they lowered the minimum to 20,000 CAD. Even small corner stores should be qualified now. But that change came in very recently only after a lot of mom & pops stores shut down already.

If you want to read it, just google "Canada Emergency Business Account (CEBA)".

You have any information for non business personnel, lets see I have got $2k, how do I calculate what amount I may have to payback?

Thanks

See below

@deank said:
A really wrong place to get advice for this. Like @Burningrunner says, you are a student. Thus, you should have a free access to some advice within your institution.