What Was CERB?
The Canada Emergency Response Benefit (CERB) paid $2,000 every four weeks to Canadians who stopped working due to the COVID-19 pandemic between March 15, 2020 and September 26, 2020. Applications were processed through both the Canada Revenue Agency (CRA) and Service Canada, creating an unfortunately common problem: many Canadians accidentally applied twice and received duplicate payments.
CERB ended in late 2020 and transitioned to modified Employment Insurance (EI) and other recovery benefits. However, CRA audits and repayment demands continue through 2026.
Who Must Repay CERB?
1. Ineligible applicants
You must repay if you did not meet the eligibility criteria, even if CRA initially approved your application:
| Eligibility Criteria | If You Did Not Meet This |
|---|---|
| Stopped working due to COVID-19 | Must repay |
| Earned at least $5,000 in 2019 or the 12 months before application | Must repay |
| Not voluntarily quitting without cause | May need to repay |
| Canadian citizen or permanent resident, age 15+ | Must repay |
2. Duplicate payments (CRA and Service Canada)
Many Canadians applied to both CRA and Service Canada in March-April 2020 — a process that was briefly possible before both systems were linked. If you received two payments for the same period:
- You must repay the duplicate amount
- Typically, CRA sends the repayment notice for amounts received through their system
- Voluntary repayments made before specific deadlines were eligible for T1 adjustments
3. CERB + Employment Insurance overlap
If you received CERB and regular EI benefits for the same period, the overlap amount is repayable.
4. Enrolled students with no employment history
Students who had no 2019 income but applied for CERB (versus the separate Canada Emergency Student Benefit) may receive repayment notices.
Common CRA Determination Letters
CRA sends different notices depending on the issue:
| Notice Type | Meaning |
|---|---|
| “Eligibility Review” letter | CRA is reviewing whether you qualified — not yet a demand |
| “CERB repayment request” | CRA has determined you owe; payment due within 30 days |
| “Notice of Assessment” (T1) | May show a CERB-related balance owing |
| Requirement to Pay | CRA is enforcing collection — serious |
Always respond to any CRA letter, even if you disagree. You can request a review or file a notice of objection within 90 days of a formal determination.
How Much Is Owed?
CERB paid $2,000 per 4-week period. Maximum payments:
| Periods Received | Total CERB Received |
|---|---|
| 1 period | $2,000 |
| 2 periods | $4,000 |
| 4 periods | $8,000 |
| 7 periods (maximum) | $14,000 |
If you received a duplicate payment for even one period, the repayment amount is $2,000 for that period.
How to Repay CERB
Repaying CRA-administered CERB
Online (My Account):
- Log in to CRA My Account
- Go to “Proceed to pay” or “Make a payment”
- Select “Repay a COVID benefit”
- Choose CERB
Online banking:
- Add CRA as a payee through your bank
- Select “CRA (revenue) – tax 2020” or similar
- Use your SIN as the account number
- Note: Some banks have a specific CERB repayment option
Cheque (mailed):
- Payable to “Receiver General for Canada”
- Write your SIN and “CERB repayment” on the memo line
- Mail to the tax centre noted on your repayment letter
By phone:
- CRA: 1-800-959-8281
Repaying Service Canada-administered CERB
If the repayment was issued by Service Canada (EI-linked CERB), repay to Service Canada — not CRA:
- Phone: 1-800-206-7218
- Online: Service Canada My Account
- Cheque payable to “Receiver General for Canada” with your Social Insurance Number
Is CERB Repayment Tax Deductible?
Yes — in the year you repay, not the year you received CERB.
This is important because many Canadians paid tax on their 2020 CERB income but are repaying in 2026. You can claim a deduction to reduce your 2026 taxable income.
How to claim the deduction
Report the repayment on Line 23200 (Other deductions) of your T1 General return for the year you make the repayment.
Example:
- Received $4,000 CERB in 2020, paid tax at 25% marginal rate = $1,000 tax paid
- Repay $4,000 to CRA in 2026
- Claim $4,000 deduction on 2026 T1 return
- Tax savings: $4,000 × marginal rate (e.g., 25%) = $1,000 refund or credit
What if you repaid in a prior year?
- If you repaid in 2020 or 2021, you could have claimed the deduction on that year’s return
- If you missed claiming it, file a T1 adjustment (T1-ADJ) for that tax year — you have 10 years to request amendments
If You Cannot Afford to Repay
CRA offers payment arrangements for individuals who cannot pay in full. Contact CRA before the debt is sent to collections.
Setting up a payment plan
- Call CRA at 1-888-863-8657 (individuals debt line)
- Have your SIN, income details, and monthly expenses ready
- CRA will typically accept an arrangement based on what you can realistically pay
Key points:
- Interest is charged on outstanding balances (currently at the prescribed rate)
- A payment plan prevents aggressive collection action (garnishment, liens) as long as you make the agreed payments
- Lower-income Canadians can apply for a Taxpayer Relief request to waive penalties and interest
Taxpayer Relief: Waiving Interest and Penalties
If you received CERB in good faith and genuinely believed you were eligible, you can apply for taxpayer relief using Form RC4288 (Request for Taxpayer Relief). CRA can waive or cancel interest and penalties (but not the principal debt itself) if you can demonstrate:
- Extraordinary circumstances (serious illness, natural disaster)
- CRA error or delay
- Financial hardship
Key Deadlines
| Action | Deadline |
|---|---|
| Voluntary repayment to avoid 2020/2021 T4A income | Ended December 31, 2020 |
| Voluntary repayment to be excluded from 2021 income | Ended December 31, 2021 |
| Current repayments (standard debt) | No deadline, but interest accrues |
| CRA collection statute of limitations | Up to 10 years from assessment |
| Notice of Objection after formal determination | 90 days from notice date |
| T1 adjustment to claim prior-year deduction | Up to 10 years back |