CERB Payments, EI, and Other Benefits are Taxable Income
CERB payments provided some financial relief during the pandemic, if you received any payments you should know that it is considered taxable income. This means when you file your 2020 taxes, you can expect to see some tax owing.
Other benefits like the Canada Recovery Benefit, the Canada Recovery Sickness Benefit, and the Canada Recovery Caregiving Benefit are also taxable, but they did have an initial 10% tax rate taken off the amount immediately. This means if you move to the next tax bracket of 15% federal tax, you will owe an additional 5% when you file your taxes.
If you received EI, this is also considered taxable income. You should receive a T4E- Statement of Employment Insurance and Other Benefits that will document your EI earnings and any remittances. Just like the Canada Recovery Benefit, the CRA withheld 10% from your EI earnings.