Skip to content

How CERB could impact your taxes | Global Morning News

 

This past year many British Columbians received CERB or other emergency benefits to help them through the economic impact of COVID-19. But those benefits could have a major impact on your taxes. Jas Dhillon from Coast Capital has more for us.

What kind of impact could [CERB] have [on your taxes]?

Well the big thing to remember is that some of the government emergency benefits that British Columbians received in 2020 such as the Canada Emergency Response Benefit and the Canada Emergency Student Benefit are considered personal income. Those benefits that were initially issued by the government weren’t taxed at the source, with the understanding that you would pay applicable taxes once you’ve filed your taxes for 2020. Some of the benefits that were issued later in 2020, there was some tax withheld. There was 10% tax withheld and if that were the case, it’s important that British Columbians are noting that when you’re filing your personal taxes. You will receive either a T4A or a T4E tax forms to file your taxes.

Now a lot of people obviously working from home over the past year and there was a Work From Home Benefit as well. How does that play into everything?

 

This is something that’s new, and something that’s called CRAs “temporary flat fee” method. The great news is you didn’t have to track any of these expenses yourself or with your employer. To take advantage of this benefit, as long as you were working from home for more than 50% of the time in 2020 for at least 4 consecutive weeks, you can take advantage of this benefits. It’s $2.00 per day up to $400.00 total. If you had additional expenses that were over $400.00, you just need to use the same traditional approach that you’ve used in previous years. The real good news story here is that more than one of you in a household are working from home, each of you are eligible for this work from home flat fee benefit.

Most popular in Managing Your Money

Managing Your Money

RRSP vs TFSA. Which is better for you?

The great debate: TFSA vs RRSP With the RRSP contribution deadline just around the corner, it’s important to know about all your savings options. Today we break down which savings…

Managing Your Money

What to do with your tax refund

A refund is basically free money, right? Once you receive your tax return, your knee-jerk reaction may be to spend it on a new spring wardrobe or hop on a…

Managing Your Money

8 common student money mistakes (and how to avoid them)

The start of the school year is an exciting time. It means giddy reunions with your friends, welcome back parties, cracking open… brand new notebooks, lugging textbooks across campus, nuking…

10 common money mistakes students make (and how to avoid them)