The Canada Recovery Benefit (CRB) provides income assistance to employed and independently employed individuals who are directly affected by COVID-19 and are not qualified for Employment Insurance (EI) benefits. The CRB is directed by the Canada Revenue Agency (CRA).
Contingent upon when you begin applying for the CRB, you can either get $1,000 ($900 after taxes retained) or $600 ($540 after taxes retained) for a 2-week time span.
On the off chance that your circumstance proceeds, you need to apply again. You must re-apply every 2 weeks as CRB does not renew automatically. You can apply for up to a total of 27 qualification periods (54 weeks) between September 27, 2020 and October 23, 2021.
Who can apply? (Eligibility Criteria)
To be eligible for the CRB you need to meet the following conditions for the 2-week period you are applying for:
During the period you are applying to:
- You were not self-employed or employed for reasons related to COVID-19
- You have had a 50% reduction in your average weekly income compared to the previous year because of COVID-19
- You did not apply for or receive any of the following:
- Canada Recovery Sickness Benefit (CRSB)
- Canada Recovery Caregiving Benefit (CRCB)
- Short-term disability benefits
- Employment Insurance (EI) benefits
- Québec Parental Insurance Plan (QPIP) benefits
- You were not eligible for Employment Insurance (EI) benefits
- Find out if you qualify: https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/apply.html
- Recently exhausted of EI benefits: https://www.canada.ca/en/revenue agency/services/benefits/recovery-benefit/crb-transition-ei.html
- You reside in Canada
- You have a home in Canada and live there. An individual does not have to be a citizen or a Permanent Resident (PR)
- You were present in Canada
- Your age is at least 15 years
- You have got a legitimate Social Security Number (SIN)
- You have earned at least $5,000 in the years 2019, 2020 or in the 12 months before the date you applied from any of the following sources:
- employment income (total/gross pay)
- net self-employment income (taking into account deducting expenses)
- maternity and parental benefits from EI or related QPIP benefits
- employment income (total/gross pay)
- regular or special benefits from EI if your EI claim began on or after September 27, 2020
- You have not quit a job or reduced your voluntarily hours after September 27, 2020, unless it was necessary
- You were seeking work during the period
- As an employee or even in self-employment
- You have not refused reasonable work within the 2-week period you are applying for
- If you refused reasonable work, you will lose about 5 periods which is equivalent to 10 weeks of the CRB eligibility periods. Wait 5 periods before you can apply
- You were not self-isolating or in quarantine because of travelling Internationally
- You had filed a tax return in 2019 or 2020
- Not required if you applied for less than 21 periods since September 27, 2020 and if you applied for period 21 (July 4-17, 2021) or a period prior to that
Individuals who are found to have fraudulent claims will go through consequences consisting of penalties and even jail time!
If you qualify and meet the above requirements, check what periods you are eligible to apply for, https://www.canada.ca/en/revenue-agency/services/benefits/recovery-benefit/crb-periods-apply.html.
How CRB is taxed?
After the CRA retains a 10% tax at source, the actual instalment you get is $900 or $540 for a 2-week time frame, contingent upon your circumstance.
If you earn over $38,000
In the event that you acquire more than $38,000 net income in the scheduled year, you should repay some or all of the benefits at tax time!
You will have to reimburse $0.50 of the CRB for each dollar of net income you procured above $38,000 on your income tax return. You won’t need to repay more than you got that year.
When to expect your payment
If you are qualified for CRB, you can expect to receive $1,000 ($900 after-tax retained) or $600 ($540 after-tax retained) for every 2-week time span, contingent upon when you begin applying for the benefit.
Processing time without validation
- Direct deposit will take up to about 3 to 5 business days if you have previously set it up with the Canadian Revenue Agency (CRA).
- A mailed cheque should arrive in about 10 to 12 business days.