As per CRA- You are allowed to earn up to $38,000 in net income (excluding the amount received for the Canada Recovery Benefit), before becoming subject to the repayment provision.
Net income refers to your income as identified on line 23600 of your income tax and benefit return.
For the purpose of the Canada Recovery Benefit, this includes all income earned from any source for which you would pay income tax, with the exception of benefits received for the Canada Recovery Benefit, payments from a registered disability plan, money received for the Canada Child Benefit and GST/HST credit.
Further information on non-taxable amounts as income can be found online.
Hope someone can help me. My net income is over the $38,000 including the Canada Recovery Benefit (CRB). BUT less than the income ceiling if l don't include my CRB. l have to pay taxes on the CRB, l agree. but Turbo Tax is not allowing me a credit for CRB when it comes to verifying my eligability and is stating l will have to pay back $6000 of CRB. This is not right and my income tax return will be FLAGGED. How can l fix this issue.
I am having a similar issue! Turbo Tax states I need to pay back $6000 in CRB even though my net income is lower than $38,000. They seem to be calculating it based on gross income and not net income?
Hope we can get some answers soon!
Hi TurboTaxBrenda1 🙂
My net income for 2020 stated in Turbo Tax is less than $38,000 and I'm still getting a warning that I will need to pay back 100% of the CRB ($6,000). I believe this is an error. It seems to be calculating on gross income, not net income. The Canada Revenue Agency website states this should be NET income and the clawback would be 50% , not 100%. Thank you for your time!
The clawback is after $38,000 NET, if my income is higher and I take RRSP to bring my net down, can I avoid the clawback this way ? And Am I correct to say my $38,000 net doesn’t have to include my CERB amount received ?