I am getting crb payments from government. i owe on taxes do u know if it will be ducted or i pay it at my leisure.

[NazMusthafa]

Thank you for choosing TurboTax.

The CRA will provide you with a T4A tax information slip at tax time for the CRA-administered COVID-19 benefit amounts you received in 2020. Your T4A slip will also be available in CRA My Account.

You must report the CRB payments that you receive as income when you file your personal income tax return.

 

If you need to reimburse CRB:

If you received the CRB and your net income is more than $38,000 (excluding CRB amounts), you may have to reimburse some or all of the benefit.

Determine if you need to reimburse the CRB

Any amounts you need to reimburse will be included as part of your total balance owing for your 2020 taxes.

Net income includes all amounts that are normally considered part of net income for income tax purposes. This includes line 23600 of your tax return (excluding the CRB amounts) with some adjustments for split income and certain repaid amounts. Net income includes any CERB, CRCB, and CRSB payments you received.

To determine if you may need to reimburse the CRB at tax time:

1. Select the tax year
2. Next Select how much of net income you earned in 2020, not including CRB payments. -

• If Less than $38,000: Your income is below the threshold. Based on the income you’re reporting, you will not need to reimburse any of the CRB at tax time. If your situation changes.
• If Between $38,000 and $50,000: You will have an amount to reimburse at tax time. Based on the income you’re reporting, you will need to reimburse $0.50 of the CRB for every dollar of net income you earned over $38,000 on your 2020 income tax return. You will not have to pay back more than your CRB benefit amount for the year.
• If More than $50,000: You will have to reimburse the full amount at tax time. Based on the income you’re reporting, you will need to reimburse the full amount of the CRB you received on your 2020 income tax return. That is $0.50 of the CRB for every dollar of net income you earned over $38,000.

Canadian Recovery Benefit (CRB) amounts are taxed at the source prior to you receiving payment. This means that you will not likely be required to pay additional taxes on these amounts, though you may still need to claim these amounts as income under certain circumstances.

To find out more, and whether or not you will need to pay back any CRB amounts you have received, visit: https://www.canada.ca/en/revenue-agency/services/benefits/recovery-benefit.html

 

Penalties and interest:

File your tax return before the due date to avoid late-filing penalties and any disruption in receiving your other benefits and credits.

The late-filing penalty is 5% of your 2020 balance owing, plus an additional 1% for each month that you are late (up to a maximum of 12 months).

For more information please click on our FAQ link-https://turbotax.community.intuit.ca/community/tax-topics/help/cerb-crb-tax-info-centre/00/1753057

If you need any further clarifications, we would be glad to guide you through.