The Canada Emergency Response Benefit (CERB) was a lifeline for many Canadians during the COVID-19 pandemic, providing crucial financial support to those who lost their income. However, some individuals may now be required to repay CERB amounts they were not eligible to receive. If you received CERB and need to repay it, here’s what you need to know about the repayment process and the deadline.
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Who Needs to Repay CERB?
You may need to repay CERB if:
- You Received Payments in Error: If you applied for and received CERB payments but later found out you were not eligible (for example, if you returned to work sooner than expected or your income exceeded the eligibility threshold), you may need to repay those amounts.
- You Received Multiple Payments: Some individuals received multiple payments from different sources (such as the Canada Revenue Agency (CRA) and Service Canada) for the same eligibility period. In such cases, you may be required to repay one of those payments.
- You Were Initially Eligible but Became Ineligible: If your circumstances changed during the eligibility period (such as returning to work or receiving other income support), you may need to repay CERB for the period during which you were no longer eligible.
How to Repay CERB
If you need to repay CERB, the process is straightforward:
- Online Repayment: You can repay CERB online through the CRA’s “My Account” service. This option allows you to make a payment directly from your bank account using the CRA’s secure portal.
- Mail-In Repayment: If you prefer, you can repay CERB by mailing a cheque or money order to the CRA. Be sure to include your Social Insurance Number (SIN) on the payment and indicate that it is for CERB repayment.
- In-Person at a Bank: You can also repay CERB at your financial institution. Bring your CERB repayment letter (if you received one) and your SIN to facilitate the payment.
CERB Repayment Deadline
The CRA has not set a strict repayment deadline for CERB, but it’s important to repay any amounts you owe as soon as possible to avoid interest charges or penalties in the future. The CRA has indicated that individuals who need to repay CERB should do so by December 31, 2023, to avoid complications with their tax returns for that year.
If you’re unable to repay the full amount by the end of the year, it’s important to contact the CRA to discuss payment options. The CRA may offer flexible repayment arrangements depending on your financial situation.
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What Happens If You Don’t Repay CERB?
If you do not repay CERB amounts you owe, the CRA may take action to recover the debt. This could include:
- Interest and Penalties: Unpaid amounts may accrue interest, increasing the total amount you owe.
- Tax Refund Offsets: The CRA may apply future tax refunds or benefits against the amount you owe.
- Collection Actions: In more serious cases, the CRA may take collection actions such as garnishing wages or seizing assets.
How to Check Your CERB Status
To determine if you need to repay CERB or to check the status of your repayment, you can log into your CRA My Account. Here, you can view your CERB payments, determine if you owe any amounts, and make repayments if necessary.
If you received CERB and are required to repay some or all of the amounts, it’s important to do so promptly to avoid any penalties or interest charges. The CRA has set a soft deadline of December 31, 2023, for repayment, but it’s best to repay as soon as possible. If you have any concerns or questions about your CERB repayment, don’t hesitate to contact the CRA for assistance.