ARC $ 2,000 / month CRB: can you qualify?

0
60


The Canada Revenue Agency (CRA) has been processing applications for the Canadian Collection Benefit (CRB) for almost a month. The new benefit is intended for employees and the self-employed, including on-demand workers, who are among the estimated 890,000 people who will not be eligible for Employment Insurance (EI) benefits.The CRB window was opened on October 12, 2020, although approval is contingent upon meeting eligibility criteria. Likewise, safeguards are in place so that the CRA can perform additional verification before processing a request. An eligible beneficiary could receive $ 500 per week for up to 26 weeks.

Who is eligible for the CRB?

In addition to not being eligible for EI, you can apply for a CRB if you meet all of the following conditions:

  • With a valid social insurance number (SIN) and at least 15 years old
  • Stopped working due to COVID-19, but is available and looking for work
  • Earn, despite at least 50% reduction in income
  • With an income of at least $ 5,000 in 2019 or 2020
  • Did not leave his job voluntarily after September 27, 2020, or was fired or laid off by an employer

What is the taxable benefit?

The CRA will pay an eligible CRB beneficiary who will pay $ 1,000 bi-weekly (actually $ 500 per week) for up to 26 weeks or 13 qualifying periods. So the total could reach $ 13,000. However, the tax agency will deduct a 10% tax for each payment, so the net amount will be $ 900.

Note that if your income in 2020 or 2021 is more than $ 38,000, you have to repay part of the CRB at tax time. The clawback is 50 cents for every dollar of income over $ 38,000. Assuming your income in 2020 is $ 40,000, you need to repay $ 1,000.

Renewal is not automatic and you must reapply for CRB if your situation is still the same after the two week eligibility period. The first official day of the CRB is September 27, 2020 and the benefit is available until September 25, 2021.

Invest in a retail monopoly

Companies that provide essential services during the pandemic are attractive options for income investors. the North West Company (TSX: NWC) might fly under the radar, but it’s a great choice for the resilience of its business. This defensive stock for consumers is one of the TSX »s best performers to date in 2020.

Current Northwest investors are earning 27.48% year-to-date while benefiting from a 4.33% dividend. An investment equivalent to the CRA’s $ 13,000 CRB will produce $ 562.90 in passive income. If it’s in your Tax Free Savings Account (TFSA), the income is 100% tax exempt.

The North West Company operates retail stores in Canada’s Far North, Alaska and the Caribbean. He sells food, family clothes, appliances, groceries and other household items. There is little competition in extreme geographies, so the company enjoys a retail monopoly.

In Q2 2020, North West recorded increases in sales (+ 23%) and net income (+ 40%). Management is currently studying the opportunities and risks emerging with the shift to spending in the community and at home of its customers.

Recalls from the CRA

Apply for CRB for two weeks at a time through the agency’s online portal. Wait to apply after missing two weeks of work. Finally, you must apply within 60 days of the missing job.

Speaking of the requirements to be eligible for the monthly $ 2000 CRB…

Freshly published! 5 actions under $ 49 (FREE REPORT)

Motley Fool CanadaThe Leading Market Team has just released a brand new FREE report revealing 5 “Very Cheap” Stocks You Can Buy Today for Under $ 49 a Share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, they could potentially make quick-acting Canadian investors a fortune.
do not miss anything! Just click on the link below to grab your free copy and now check out all 5 of these stocks.

Request your FREE 5 Stock Report Now!

Foolish contributor Christopher Liew has no position in any of the stocks mentioned.

LEAVE A REPLY

Please enter your comment!
Please enter your name here