The 2020 Tax deadline is approaching on April 30, 2021. Make sure, you do your taxes properly with CERB income and other government (CRB, CESB, CRSB,CRCB) supports. Penalties ~5% and interest may apply if you file and pay late.
This is a short reminder that government support payments are often taxable. Some of the payments send out had no tax deductions, so if you received cash, put some aside for taxes. For the CERB, How much to put aside? As it was at a low-income level, use the lowest rate at 20.5% (federal rate at 15% and provincial 5.05%). So the rule of thumb is put aside 20% of CERB. The CRA-administered CRB, CRSB and CRCB all have 10% withheld at source (they deduct 10% for taxes just like you were an employee). So, put aside 10% of CRB, […]