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Koroll & Company Blog

Did You Need To Confirm Your CERB Eligibility?

[fa icon="calendar"] Jan 26, 2021 12:01:00 PM / by Allen Koroll

When CERB was first released, the government wanted to get it out as quickly as possible so that Canadians would have the support they needed. But that meant eliminating validation checks to speed up the process. 

The problem is validation is a necessary step to ensure nobody took advantage of a program that was meant to support the millions of Canadians who lost their jobs. 

And that’s why before the end of 2020, the Canada Revenue Agency sent out more than 440,000 letters to select CERB recipients. The letter asked recipients to confirm that they did in fact meet the eligibility requirements to receive CERB. Specifically, the government was reviewing the criteria which required taxpayers to make at least $5,000 before taxes in the 12 months before applying. 

The letters implied that if the recipient was not entitled to the amount because they didn’t meet the $5,000 income threshold, they may have to repay the amount before the end of 2020. 

In response to concerns, Employment Minister Carla Qualtrough said “Nobody is asking you to pay if you can’t pay. We’re putting you on notice that you may not be eligible …  this sincerely was an attempt to get ahead of a very complicated tax time next year for millions of Canadians.”

The reason it’s a notice that recipients may not be eligible is because the notices were sent out based on 2019 returns. But the 12-month period in questions straddles 2019 and the beginning of 2020, so it’s possible that these recipients did meet the criteria, if their earnings from January to March of 2020 put them over the $5,000 when combined with earned income in 2019. 

Other reasons recipients may have received a letter is that they:

  • Continued to receive payments after returning to work
  • Received the student targeted aid as well 
  • Were kept on payrolls through wage subsidy programs 

If you have received a letter or receive one at a later date, it’s important to review your eligibility criteria. For help with business or personal tax matters get in touch with us.


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The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.



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Topics: Tax Tips

Allen Koroll

Written by Allen Koroll