Since the Canada Emergency Response Benefit (CERB), other recovery benefits such as the Canada Recovery Benefit (CRB) and lockdown benefits all count as taxable income, individual earnings will be higher this year, meaning the additional funding some people saw during the height of pandemic programs will be reflected in how much people can receive in tax credits. Crucially, advocates say, many parents who usually receive the Canada Child Benefit will see a hit to how much of the benefit they get this year. While low earners won’t necessarily be impacted, Stapleton said, people earning “modest” wages — about $45,000 annually — and several children could lose around $3,000 in benefits this year if they received CERB or CRB. Sarangi and Stapleton are hoping the government takes a similar approach to handle parents who are now losing out on the CCB. Meanwhile, those who received the benefit have already paid taxes on their higher income, Stapleton said.

Source: thestar July 22, 2022 05:37 UTC