The Canada Emergency Response Benefit (CERB) was introduced in 2020 to support workers whose income was affected by the COVID-19 pandemic. Millions of Canadians received up to $2,000 every four weeks for as long as they were eligible.
While the program ended years ago, CRA has the legal right to reassess returns and ask for repayment when eligibility or reporting issues are discovered even years later.
Common Reasons CRA Asks for a CERB Repayment
1. Incorrect Income Reporting
If earnings were higher than reported and CERB eligibility requirements were not met, CRA makes an adjustment.
2. Overlapping Benefits
Receiving CERB at the same time as EI or other benefits without reporting can trigger repayment.
3. Self-Employment Income Misalignment
Gig workers, freelancers and contract earners often underreport income, which affects CERB eligibility.
4. Late or Amended Tax Returns
If your original tax return was amended after CERB was issued, CRA might reassess and bill you for excess benefit.
How CRA Calculates What You Owe
CRA recalculates your eligible CERB amounts based on:
- Gross income for the CERB period
- Reported tax returns
- EI or other benefit overlap
- Any corrections or income omissions
If the recalculated benefit amount is lower than what you received, you’ll receive a Notice of Assessment (NOA) asking for repayment.
You will see this as:
- A notice labelled “Benefit repayment”
- A balance owing amount
- Interest charges from the repayment date
What Happens If You Ignore a CERB Repayment Request?
Ignoring a CERB repayment notice can lead to:
- Interest charges on unpaid amounts
- Increased overdue penalties
- CRA collections actions
- Impact on future benefit eligibility
- Potential garnishment of wages or bank accounts
Step-by-Step CERB Repayment Action Plan
1. Read the Notice Carefully
The first step is understanding why CRA reassessed you and how much is owed.
2. Get a CRA My Account
Review your tax returns, benefit periods, notice explanations and calculations directly with CRA.
3. Check Income Reporting
Ensure your reported income matches your T4, T5, and any self-employment income you received.
4. Identify Overpayments
CRA will list which periods or payments were incorrectly claimed.
5. File an Objection If Needed
If you disagree with CRA’s assessment, you have 90 days to file a formal objection.
CERB Repayment Options If You Can’t Pay Right Away
CRA may allow:
- Payment plans
- Interest-only arrangements
- Financial hardship deferrals
But you must contact CRA proactively, waiting only increases penalties.
How a Tax Professional Can Help You
CERB repayment notices often involve:
- Complex income reconciliation
- Multiple tax years
- Gig economy income
- Benefits overlap
- Notice objections
A tax accountant can:
- Review your NOA line-by-line
- Correct income reporting errors
- File objections on your behalf
- Negotiate repayment terms
- Explain interest & penalties
Most People Don’t Know This
- CERB is taxable and reporting it correctly affects future benefits.
- Many reassessments come from mismatched self-employment income reporting.
- CRA’s audit focus has shifted toward gig economy reconciliations.
Final Advice
If you received a CERB repayment notice, don’t navigate it alone. CRA calculations can be confusing, and errors can cost you thousands in penalties and interest. Getting professional guidance ensures your repayment is handled correctly, protects your finances and reduces stress
FAQs
- Can CRA reassess benefits years later? Yes. CRA generally has 3 years to reassess, but that can extend in complex cases.
- Do I have to repay interest on CERB? Yes, CRA adds interest from the repayment date until you pay in full.
- What if I can’t afford repayment? You can request a payment arrangement with CRA.
- Will CERB repayment affect my credit score? No, CRA tax balances are not reported to credit bureaus, but unpaid amounts can lead to collections.
