Canada Revenue Agency: Are You Eligible for the $2,000 CRB?

The CERB has ended, and it’s being replaced by the EI and the CRB. While it’s designed for people who don’t qualify for the EI, it might be serving people beyond its scope.

| More on:
Modern skyscrapers in business district

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Almost everyone who lost their source of income (fully or partially) was eligible for the CERB. It’s inclusivity, and “fewer-questions-asked” policy made it one of the most sought after benefit payment in the history of Canada. Now, we have the CRB, which is a bit more discerning. The CRA has made the CRB qualifications a bit more restrictive than the CERB’s was.

And you have to ensure that you are eligible before you apply. Because if you are not eligible and you do apply, you might not receive the payment in time to help you with your necessary expenses. Understanding the eligibility criteria would help you figure out whether it’s the right benefit payment for you or should you apply for something else.

CRB eligibility

The eligibility criteria for the $2,000 a month CRB (but you will receive $1,800 after tax is deducted), is strict but not convoluted. The first stipulation is income-related. For the period in which you’re applying, you shouldn’t have any income from a full-time job or any self-employment income. You are also eligible if your income for the period you are applying for got reduced to 50% or less of your average weekly income.

If you are receiving any other benefit: The EI, CRCB, CRSB, QPIP, short-term disability, or worker’s compensation, you are not eligible. You also need to be present in the country for the period you are applying for. Other requirements include age (at least 15 years) and a valid SIN number.

You should also prove that you earned at least $5,000 in 2019, 2020, or in the 12 months preceding the benefit payment. If you quit a reasonable job voluntarily, you might not be eligible.

Self-made benefits

You may not worry about CRB eligibility if you have your own savings and investments to sustain you. And if your self-made benefits come from the TFSA, it’s better than the CRB anyway, since you won’t have to pay any taxes on it. If you had invested $5,000 in Clairvest Group (TSX:CVG) 10 years ago (at the beginning of 2010), you’d have about $25,000 in the company (with dividends re-invested).

This is equivalent to at least 12 months of CRB, which is far more than you’d get from the benefit payment, as you are only eligible to receive the payment for 26 weeks. Clairvest is a Toronto-based equity management firm with about $2.4 billion of equity capital under management.

It’s not a rapid growth stock, but it’s consistent. And if we consider its valuation, it’s still a bit undervalued, so you don’t have to wait for a market crash to add this company to your portfolio.

Foolish takeaway

Starting a nest egg at the right time would have given you more options. If you had enough reserves in your TFSA to lean on, you could choose not to receive benefit payments like the CRB. And if you don’t have any reserves, you should learn from the current situation and start investing as soon as you can. Set some money aside and invest so that you are ready for the next financial crisis.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned.

More on Dividend Stocks

money cash dividends
Dividend Stocks

2 Passive-Income ETFs to Buy in 2022

Unlike stocks, distribution-focused ETFs may not offer an equally healthy capital-appreciation potential, but they might still be worth buying.

Read more »

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

RRSP Investors: 2 Top Total-Return Stocks to Build Retirement Wealth

These top TSX dividend stocks offer high yields and currently trade at discounted prices.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

The 3 Best TSX Dividend Stocks That Pay Cash Monthly

Looking to earn monthly passive income from top dividend stocks? Here are three fresh ideas for July 2022.

Read more »

Cogs turning against each other
Dividend Stocks

2 Resilient Value Stocks That Could Weather the Storm

The resilient businesses of two value stocks can help you endure recessionary pressures and deliver superior returns in 2022.

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Retirees: Fortify Your Portfolio by Building a 2nd Pension

One of the best ways to utilize your retirement savings without depleting them is to invest them in dividend stocks.…

Read more »

Value for money
Dividend Stocks

Value Investors: These 3 TSX Stocks Are a Steal in July 2022

Shopping for undervalued stocks in July? Start your research with Canadian Tire (TSX:CTC.A) and two others.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Market Correction: 1 Future Dividend King to Buy Today

Restaurant Brands International (TSX:QSR)(NYSE:QSR) stock seems way too cheap to ignore, as the defensive dividend play sags alongside the TSX.

Read more »

money cash dividends
Dividend Stocks

Got $500? Create Passive Income of $5,000 Today!

Even if you can only afford $500, you can use it to create $5,000 in passive income by remaining consistent…

Read more »