The Canada Revenue Agency (CRA) has launched the new Canada Recovery Benefit (CRB) this week. The CRB is an alternative Canada Emergency Response Benefit (CERB) for those who don’t have an Employment Insurance (EI) or have exhausted their EI.
The CERB was the most popular and successful benefit of the CRA to date, and Canadians had difficulty parting ways with the benefit. Change is not easy, but it is still a necessity.
Adapting to a new way of living with COVID-19, people need more flexibility in terms of work without affecting their income. Many people would be jobless or may not be able to work because of COVID-19-related issues.
Anyone can contract coronavirus. At that time, the infected person has to be quarantined for 14 days. The area is declared a containment zone, and the local shops and businesses are closed. The new recovery benefits are designed to address these issues.
The $500 CRB is better than the $500 CERB
The Justin Trudeau government has passed new legislation in which it increased the CRB benefit to $500 a week, bringing it in line with the CERB. The government realized that it would at least take a year for the economy to return to normalcy. Hence, the new CRB begins from September 27 and ends on September 25, 2021. Every eligible individual can claim the CRB for up to 26 weeks, claiming a maximum of $13,000.
The CRB is just like the CERB. It is better than the CERB in two ways.
You can claim the CRB even if your monthly income for the benefit period exceeds $1,000. The only condition is your annual income should not exceed $38,000 after excluding CRB.
You can claim CRB till September 25, 2021. In these 52 weeks, you can claim the benefit for any of the 26 weeks when you become eligible.
How to apply for CRB?
The CRA has changed the application process for the CRB to improve the glitches the CERB application had. In CERB, you could apply for four weeks in advance, anticipating that you won’t earn more than $1,000 for that period. This led to many applicants repaying their CERB later. Moreover, the CRA is also giving retroactive CERB payments for those who apply for the previous period before December 2. All this is adding to CRA’s administrative burden.
The CRA has made the CRB smoother. You have to first register for the benefit on the CRA website. Then, you can submit your application every two weeks. In one application, you can’t claim for more than two weeks. Moreover, you can’t claim the benefit after 60 days of the benefit period.
For instance, you can claim the first CRB on October 12 for the two weeks from September 27 to October 11. If you are eligible for the benefit during this period, your last date to apply would be December 10 (60 days after the end of the benefit period).
The CRA can take back your CRB
The CRA can take back some or all of your CRB if your annual income exceeds $38,000. It will take back $0.5 of the benefit for every dollar you earned above $38,000 after excluding the CRB payment. It will take back the benefit in the year-end when you file your income tax returns. This means, if you claimed $4,000 of CRB in 2020 and your annual income excluding CRB came out to be $40,000, the CRA can take back $1,000 of the benefit amount.
Make the most of your CRA cash benefit
Now that the CRB is giving you the same liquidity as the CERB, the stock market might return to its growth path. You can maximize your CRA cash benefits by investing $100 every week in a growth stock like Lightspeed POS (TSX:LSPD)(NYSE:LSPD). The stock is trading at a 16.6% discount from its all-time high as the company launched a U.S. IPO last week from which it has raised $397 million.
Lightspeed has the potential to grow in the post-pandemic economy. It has adjusted its omnichannel solutions to help retailers and restaurants to operate with social distancing. The stock soared 230% from its March low and surged 90% last year.
The post CRA Cash Benefits: The $500 CRB Is Better and More Flexible than CERB appeared first on The Motley Fool Canada.
Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool owns shares of Lightspeed POS Inc.
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The $1,000 (before taxes) includes royalties earned for work you did during those weeks you were applying for the CERB, but not for work you did in other weeks. You must have met all eligibility criteria to be eligible. You are a Canadian worker who normally lives in Canada.
To be eligible for the CRSB payments, you must have met all the following conditions: You were unable to work at least 50% of your scheduled work week because you had to self-isolate for one of the following reasons:You were sick with COVID-19 or suspected you had COVID-19.
Who were at least 19 years old on December 18, 2020, or met specific eligibility criteria. Who filed a 2019 Canadian personal income tax return, or met specific eligibility criteria. Who have a valid social insurance number, individual tax number or temporary tax number.
A credit reference bureau (CRB) is a firm that collects information from financial institutions and provides consumer credit information on individual consumers for a variety of uses. CRBs hold credit data shared by financial institutions and facilitate credit lending to financial institutions.
The CRB program pays individuals for a maximum of 13 periods, or 26 weeks. Each period requires a new application. The total amount of money available per person is $13,000, but the withholding tax on the amount reduces the actual cash payments to $11,700.
They have set certain norms that have to be followed by the people to be eligible. The Canadians who are earning less than $20000 (single individuals) and $35000 (couples) are eligible. The taxpayers or the tax return filers can apply for the benefit. The permanent residents of the country can apply.
This one-time, tax-free $500 payment is intended to support lower-income individuals and families who struggle with the cost of rent. Since the Government of Canada launched the benefit on December 12, 2022, more than 600,000 renters in Canada have already received their one-time payment.
What is the Canada Recovery Benefit? The CRB is the most similar to CERB. It's essentially a direct replacement, but only if you're ineligible for the new EI. Payments are $500 per week for up to 26 weeks.
EI sickness benefits can provide you with up to 26 weeks of financial assistance if you can't work for medical reasons. You could receive 55% of your earnings up to a maximum of $668 a week. You must get a medical certificate showing that you're unable to work for medical reasons and for approximately how long.
Who is eligible for the Canada caregiver amount? You can claim the caregiver allowance in Canada if, at any time during the tax year, you provide support to your spouse or common-law partner who has an impairment in physical or mental functions.
Use My Self Serve to assess your eligibility and apply for assistance from the B.C. government. If you can't complete the application online, call 1-866-866-0800 or visit your local office. You will need to provide details about your current situation, income and assets.
The BCEBW is a one-time, tax-free $1,000 payment for British Columbians whose ability to work has been affected as a result of the COVID-19 pandemic. Most people who are eligible for the new federal Canada Emergency Response Benefit (CERB) are also eligible for the BCEBW.
There are three levels of DBS check: basic, standard and enhanced. Each level shows different information about an individual's criminal record. Depending on the level of check conducted, it also includes other information, such as whether or not the individual is on the sex offender register.
Log in using your mobile number and the reference number you received through SMS. After you have logged in, select 'Clearance Certificate. ' Pay Kshs 2,200 for the certificate through the Paybill number 220388.
A Credit Reference Bureau (CRB) is an organisation that monitors the behaviour of a lender (someone with a loan) to enable lenders to deal with non-performing loans and reduce the loan default risk.
A DBS check (Disclosure and Barring Service) does not have an official expiry date. Any information which is included on the check will be accurate at the time the check was carried out.
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