Personal Finance

Does CERB have a clawback?

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  • Jan 27th, 2021 2:11 pm
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[OP]
Newbie
Sep 5, 2014
24 posts
8 upvotes

Does CERB have a clawback?

Just curious if CERB has a clawback?

I had to collect it for two months earlier on during the pandemic. But I’ve been employed for the remainder of the year.

I was doing some reading and see that the CRB has clawback provisions but can’t figure out if these were introduced when CRB replaced CERB or if they are specific to CRB.

Just wondering as I could make some RRSP contributions to bring down my income.
6 replies
Deal Fanatic
User avatar
Jan 31, 2006
7093 posts
1790 upvotes
Toronto
BarbaraJeanE834 wrote: Just curious if CERB has a clawback?

I had to collect it for two months earlier on during the pandemic. But I’ve been employed for the remainder of the year.

I was doing some reading and see that the CRB has clawback provisions but can’t figure out if these were introduced when CRB replaced CERB or if they are specific to CRB.

Just wondering as I could make some RRSP contributions to bring down my income.
Yes, CERB can be clawback.
Member
Apr 16, 2015
288 posts
380 upvotes
cgtlky wrote: Yes, CERB can be clawback.
People can be forced to repay CERB if they were not eligible, but I don't believe it has an income clawback like CRB (where you will be required to repay $0.50 for every dollar in net income you earn above $38,000).
Deal Addict
May 16, 2017
1596 posts
2018 upvotes
CERB doesn't have a clawback in the normal sense (i.e. if you have more than such-and-such income, the benefit is reduced and clawed-back at income tax time). As others have stated - it will be added to your tax bill if you weren't eligible (that isn't clawback, that is "recovery" of improper <or fraudulent> payments).

BUT - CERB is taxable income.
Member
Jan 28, 2019
345 posts
179 upvotes
BarbaraJeanE834 wrote: Just curious if CERB has a clawback?

I had to collect it for two months earlier on during the pandemic. But I’ve been employed for the remainder of the year.

I was doing some reading and see that the CRB has clawback provisions but can’t figure out if these were introduced when CRB replaced CERB or if they are specific to CRB.

Just wondering as I could make some RRSP contributions to bring down my income.
you only have to pay it back if you were not eligible. if you only received it for two month you wont owe much. just download a free tax software and see yourself.
[OP]
Newbie
Sep 5, 2014
24 posts
8 upvotes
catsoncoffee wrote: People can be forced to repay CERB if they were not eligible, but I don't believe it has an income clawback like CRB (where you will be required to repay $0.50 for every dollar in net income you earn above $38,000).
This is what I was wondering. Thank you for the clarification.

I was eligible because I was unemployed at the time. Just wondering if my income could cause clawback and it looks like it can't under CERB. CRB was when the clawback provision was added.
[OP]
Newbie
Sep 5, 2014
24 posts
8 upvotes
robsaw wrote: CERB doesn't have a clawback in the normal sense (i.e. if you have more than such-and-such income, the benefit is reduced and clawed-back at income tax time). As others have stated - it will be added to your tax bill if you weren't eligible (that isn't clawback, that is "recovery" of improper <or fraudulent> payments).

BUT - CERB is taxable income.
Thanks. This is exactly what I was wondering. I was aware it was taxable and have prepared for that.

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