Did you receive CERB? The CRA may want their money back soon

At the height of the pandemic the federal government sent money to almost nine million Canadians in the form of benefits from the Canada Emergency Response Program (CERB).

Now, two years later the Canada Revenue Agency (CRA) has checked its books and it wants some of that money back.

Sarah Mercer, of Newmarket, Ont. just got an email directing her to repay some of her CERB benefits, but she won’t know how much until she gets a letter from the CRA in the mail.

"It’s ridiculous,” Mercer told CTV News Toronto. “I’ve worked for 20 years and I’ve always paid my taxes on time and the government is finally going to do something to help me out. At the time it was a relief and then two years later I’m being told I’ve got to pay the money back? It’s like, ‘Whoa.’”

Janice Bowers of Stoney Plain, Alta. applied for medical unemployment insurance due to an injury at the beginning of the pandemic, but instead, she received CERB payments.

Bowers was just notified she will have to repay $1,000 in CERB benefits, something she says will be difficult with her husband receiving a disability pension and her working part-time.

"With the price of gas and my mortgage payment going up today, it's going to be a struggle with food prices going up and everything else,” she said.

Many Canadians who received CERB benefits are still struggling, and while some are being asked to re-pay $1,000 to $2,000, others could owe much more.

Laurie Campbell, director of client financial wellness services with Bromwich & Smith, a licensed insolvency trustee, said they are seeing more clients in financial difficulty due to inflation, mounting bills and health issues.

Campbell said many Canadians will have difficulty paying the funds back.

“The federal government initially gave out $2,000 before qualifying anyone so a lot of people will just owe that $2,000, but there are people who collected the CERB the whole period and they could owe tens of thousands of dollars,” Campbell said.

CTV News Toronto asked the CRA why the payments are being asked for now and, in a statement, a spokesperson for the CRA said, “the NoRs (notice of redetermination) are being sent to individuals who received a payment, but were later determined to be ineligible for one or more benefit periods received.”

The CRA said it will take payments over time and won't charge interest, but many Canadians may still find it difficult to come up with the money.

Doug Gablehaus, president of CPS Accounting Services in Calgary said, “People should not be asked for this money back. It’s only two thousand dollars."

Some of those being asked to repay the funds say the federal government should have done a better job of handing out the benefits, so they wouldn't now be asked to pay it back.

"I don't know how I’m going to be able to repay this right now. I’m off work, I’m not even sure when I’m going back and this was a real shock,” Mercer said.

Bowers said, “Why am I paying for their mistakes, why are we all paying for their mistakes?"

The CRA said it is willing to work with Canadians who applied for CERB benefits in good faith and that it will deal with taxpayers who owe money on a case-by-case basis.