Interest Relief on 2020 Income Tax Debt due to COVID-19 Income Support

Lisa C. COVID-19, Settlement & Community News, Updates

The Government of Canada has recently announced:

Self-employed individuals whose net self-employment income was less than $5,000 and who applied for the CERB will not be required to repay the CERB, as long as their gross self-employment income was at least $5,000 and they met all other eligibility criteria.

Some of these individuals may have already voluntarily repaid the CERB. The CRA and Service Canada will return any repaid amounts to these individuals.

The Government of Canada will also provide targeted interest relief to Canadians who received COVID-related income support benefits. Once individuals have filed their 2020 income tax and benefit return, they will not be required to pay interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022.

To qualify for targeted interest relief, individuals must meet certain criteria: https://www.canada.ca/en/revenue-agency/news/2021/02/government-of-canada-announces-targeted-interest-relief-on-2020-income-tax-debt-for-low–and-middle-income-canadians.html

Additional details will be available in the coming weeks.

Word of the Day:

Gross: total, without deduction of tax