2020 Income Tax return and the impact of CERB income in individuals that claim you as a dependant and are income geared non refundable tax credits

1

Does anyone know…
If you are claimed as an eligible dependant, or as a spouse by someone on their tax return for non refundable income tax credits that are income geared calculations, if by the dependant being claimed received CERB payments will surpass the income threshold used for these deductions on the 2020 tax year returns?

2

I don’t think CERB is employment income so I don’t know the answer.
I would ask the CRA.

3

All dependant non-refundable tax credits are based on net income at line 23600 of the tax return.
Calling CRA is useless. The call agents are not trained income tax professionals, they just look things up in a online manual.
I’ve searched everywhere online including CRA. Just wanted to put the question out there to see if anyone has come across anything, as well as give a heads up to others. Thank you though!

4

If I understood you correctly then here’s the answer to your question:

You are eligible to claim the amount for an eligible dependant on line 30400 of your return if none of the following situations applied:

  • The dependant’s net income was $12,069 or more. However, if you claimed the Canada caregiver amount for the same defendant, the dependant’s net income was $14,299 or more.

Link: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-30400-amount-eligible-dependant/you-claim-amount-eligible-dependant-line-30400-6.html

CERB is a taxable income and you will have to include it in your 2020 tax return. As of now I don’t think you can receive more than $10,000 in CERB (5 month in total).

Although the CRA employees on the phone are not knowledgeable about tax matters they always transfer your calls to tax professionals in their organization. At least that’s my experience with them.