Tax Tip Thursday

It looks like Trudeau has proposed to come through a little bit more for Canadians!!

Note: these proposed changes have NOT been passed as legislature and are not currently in effect.

CRB — Canada Recovery Benefit

This is very much like EI, but includes people who are self-employed. This program started in October and was originally slated to run for a maximum of 26 weeks. The new proposal has it being extended an additional 12 weeks to a new maximum of 28! As with before, you need to reapply for it every two weeks, be available for work, not be turning down work, etc…

One interesting situation we found this week was related to people who own corporations. We were lucky enough to talk to an actual tax auditor on the subject this week! We found out that if you own a corporation and have no or few revenues in the corporation, you are entitled to take CRB. The question we had was, if you are working for your own corporation, how are you going to be “looking for work,” one of the requirements for CRB? It turns out that as long as your corporation is looking for work, you are too.

Great news for people who own corporations!

CRSB — Canada Recovery Sickness Benefit

This benefit gives income support to employed and self-employed individuals who are unable to work because they are sick or need to self-isolate due to COVID-19, or have an underlying health condition that puts them at greater risk of getting COVID-19. This only provided up to two weeks of benefit before, but the proposal has that being increased to four! This is being done to encourage people who are sick to stay at home rather than look for work.

EI — Employment Insurance

As most people know, EI is employment insurance that individuals can receive due to the loss of their job. The difference between this and CRB (and other similar benefits) is that your job loss does not need to have been a result of COVID. The new proposal reduces the number of insurable hours required in order to qualify and extends the program to nearly double its original length! Previously, EI was only available for a maximum of 26 weeks. Under the new proposal, all claims made between September 27, 2020 and September 25, 2021 will be available for up to 50 weeks!

Important Note

As I said earlier, none of these proposed changes have taken effect yet. They are just proposed changes. However, you should be aware of them in advance so that you can take advantage of them when they do take effect! Additionally, be careful not to take any benefits for which you do not qualify. You could find yourself having to pay back a lot of money if you do!

If you’re not sure what you qualify for, I can help you with that. Give me a call or set up an appointment!

Disclaimer:

This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal or tax advice nor can it or should it be relied upon. All tax situations are specific to each individual. If you have specific tax questions you should book an appointment for a 1 on 1 consultation.