Ok…I am on a permanent CPP-D and earn around $5000 per year working a little part time job normally, so I qualify for CERB. I have only taken two monthly CERB payments totalling $4000. I know there are two more monthly CERB payments available for May and June, however applying for them would equal $8000…far over the $5800 max you can earn in 2020 on CPP-D. Im very confused about it all. I know the CERB is taxable and I will put it in my 2020 tax return next year…however I am REALLY needing that May and June CERB payment to get by as my part time job ended in early March when Covid19 restrictions happened. If I take the May and June CERB payments it pushes me over the maximum annually allowable earned by a CPP-D recipient… will I have to pay it back OR will CPP take away my monthly payment ($800!)?
You can earn max $5,800 of employment income. CERB is not considered an employment income so it shouldn’t be taken into consideration.
Hi, thanks for your message. Questions: CERB is not considered employment income?..Then why is it taxable? Why do I have to claim it on my tax return?
Applying and receiving all $8000 CERB payments wont affect my CPP-D negatively instantly or eventually?
Because that’s how the government made it.
Lots of non-employment income is taxable - rent, dividends, profits from selling personal goods, CPP, OAS, etc.
Your CPP disability is also a taxable income, so you know. You have to claim it on your tax return also. Like many other benefits.
They made CERB taxable, my guess is 1) to get most of it back next year. A lot of people will have a high income in 2020. So they will pay a huge chunk of CERB back with taxes.; 2) is to investigate your eligibility for CERB. When you submit your taxes they will be able to check it thoroughly having all the information about your 2019-2020 activity on their hand.
I talked to Service Canada representative before and she told me it wouldn’t affect your CPP-D. Others on this forum said the same.