Please note that our office will be closed on Monday, October 12, 2020, for Thanksgiving Day. We will resume regular business hours on Tuesday, October 13. Happy Thanksgiving to all of you!
Applications for the Canada Recovery Benefit open on Monday
The Canada.ca website has now been updated with all application details for the Canada Recovery Benefit.
How to Apply
Through CRA My Account
Amount & eligibility periods
If you are eligible for the CRB, you can receive $1,000 ($900 after taxes withheld) for a 2-week period. The first period is September 27 – October 10. Applications will open on Monday, October 12.
If your situation continues past 2 weeks, you will need to apply again
You may apply up to a total of 13 eligibility periods (26 weeks) between September 27, 2020 and September 25, 2021. You can apply for a maximum of 13 periods out of the total 26 periods available. The 13 periods do not have to be taken consecutively.
Who can apply?
During the period you are applying for:
- You were not working for reasons related to COVID-19 or you had a 50% reduction in your average weekly income compared to the previous year due to COVID-19
- You were not eligible for EI benefits
- You were present in Canada
- You earned at least $5,000 in 2019, 2020, or in the 12 months before the date you apply from any of the following sources:
- employment income (total or gross pay)
- Net self-employment income (after deducting expenses)
- Maternity and parental benefits from EI or similar QPIP benefits
- You were seeking work during the period, either as an employee or in self-employment
- You have not turned down reasonable work during the 2-week period you’re applying for
- You have not quit your job or reduced your hours voluntarily on or after September 27, 2020, unless it was reasonable to do so
How to calculate the 50% reduction
The 50% reduction is based on your average weekly employment or self-employment income from either 2019, 2020, or the previous 12 months. You will need to check that you meet this criteria for every period you apply for.
2019 or the last 12 months (first item of comparison)
$26,000 (employment and self-employment income in 2019 or the last 12 months)
= $500 (average weekly income in 2019 or the last 12 months)
= $250 (50% of the average weekly income in 2019 or the last 12 months)
CRB 2-week period (second item of comparison)
$100 (employment and self-employment income for the CRB period)
= $50 (average weekly income for the CRB period)
The average weekly income for the CRB period must be less than 50% of the average weekly income in 2019, 2020, or the last 12 months. In this example, since $50 (average weekly income for the CRB period) is less than $250 (50% of the average weekly income in 2019 or the last 12 months), the individual would meet this criteria.
How your income affects what you keep
You may earn employment or self-employment income while you receive the CRB. But to make sure the benefit reaches those who need it most, there is a difference in how much you can keep if you earn more than $38,000 in the calendar year. This amount excludes CRB payments.
You will have to reimburse $0.50 of the CRB for every dollar of net income you earned above $38,000 on your income tax return. You will not have to pay back more than your benefit amount for that year. This will be due at the same time as your income tax return for the year. Late payments will be charged interest.