The Canada Recovery Caregiving Benefit (CRCB) is another benefit available to Canadians due to the outbreak of COVID-19. The CRCB is specifically aimed at employed or self-employed individuals who can’t work because they need to take care of a child under the age of 12 or a family member that requires supervised care.
For those who are eligible for the CRCB, you would get $500 for each 1-week period. However, since 10% is withheld for taxes, you’d get $450 deposited in your account. The benefit is available for a total of 26 weeks between September 27, 2020 and September 25, 2021. You don’t need to take the benefit in consecutive weeks, but you do need to apply after each 1-week period.
- Resident of Canada
- Must be at least 15 years old and have a valid Social Insurance Number (SIN)
- Employed or self-employed immediately preceding the time of the application
- Earned at least $5,000 in 2019, 2020. Or in the 12 months leading to the date you’re applying
- Unable to work for at least 50% of your normally scheduled work within a given week because you’re caring for a family member
- Must be caring for your child under 12 years old or a family member who needs supervised care due to one of the following reasons:
- Their school, daycare, day program, or care facility is closed due to COVID-19
- Their regular care services is not available for reasons related to the COVID-19
- The person under your care must have one of the following:
- Is sick with COVID-19 or has symptons
- At high risk of health complications if they get COVID-19
- Is self-isolating due to COVID-19
- Must not be on paid leave during the same week
- Must not be on any other benefits at the same time including the CRB, CRSB, short-term disability, workers’ compensation, EI, and QPIP
- Only one person in your household can apply per week
How much does CRCB pay?
The weekly Canada Recovery Caregiving Benefit (CRCB) is $500 per household. Since there 10% is withheld for taxes, you end up with $450 in your account. To be clear, only one individual in the same household can apply for the benefit each week. Even if you’re caring for more than one individual, you only get a single payment.
You can claim the benefit for up to 26 weeks. Therefore, the maximum you’ll get paid from the CRCB is $13,000 (before tax). Remember, you need to apply for each one-week period. Your payments are not automatically rolled over.
Even though 10% of the CRCB is withheld for taxes, it’s possible that you may need to pay more taxes later. The CRCB is considered income so a T4A tax slip will be sent to you. When you file your taxes, you’ll be taxed on your marginal tax rate.
When to apply for CRCB?
The Canada Recovery Caregiving Benefit (CRCB) is based on specific periods. Each week starts on a Sunday and ends the following Saturday. You would apply the first Monday after the 1-week eligibility period has ended. For example, if you wanted to claim the CRCB for the week of October 4 to October 10, 2020, you would have applied on Monday October 12, 2020.
Payouts take about 3-5 business days, but you need to have your direct deposit information set up. If you want a cheque mailed to you, it’ll take 9-12 business days to arrive.
Remember, the CRCB only lasts 26 periods. One you’ve collected the maximum amount, you can’t get anymore payments even if you’re still caring for someone/ To see how many periods you’ve already applied for, check your application in your CRA My Account under “COVID-19 Support Payment Application Details”.
How to apply for CRCB?
You apply for the Canada Recovery Caregiving Benefit online through your CRA My Account. If you don’t have a CRA My Account, you can apply online. Setting up your account is easy as long as you’ve filed your taxes in the past.
Another way to apply is by phone, but they may need to validate your application before you get paid. The validation process is simple, but you’ll need to provide documents showing your income history. In addition, it may take up to 4 weeks to complete the validation so it might be a while before you get paid. Again, apply via your CRA My Account if possible as it’s the quickest way to get your benefits.
If you’re going to continue to re-apply for your benefits, you must meet the eligibility criteria every week. Applying for new weeks is done the same way as previous weeks.
How to return CRCB?
Since the Canada Recovery Caregiving Benefit operates under an honour system, you could get a payment even if you didn’t qualify. You need to return the CRCB if you meet one of the following conditions:
- You applied for the CRCB when you weren’t eligible
- You got the payment by mistake
- Another family member in your household got a payment for the same period
- You received one of the following payments during the same eligibility periods
- Canada Recovery Benefit
- Canada Recovery Sickness Benefit
- short-term disability benefits
- workers’ compensation benefits
- Employment Insurance (EI) benefits
- Québec Parental Insurance Plan (QPIP) benefits
- You made a fraudulent claim
If you received a CRCB payment when you weren’t eligible in 2020, you should return it by December 31, 2020.
You can return your CRCB payments through online banking or mailing a physical cheque. If you received a cheque for your CRCB payment and you haven’t cashed it yet, you can mail it back.
The Canada Recovery Caregiving Benefit (CRCB) provides support to specific individuals who need to take care of their family during the crisis. Before the CRCB, many people were forced to quit or leave their jobs without any income. The CRCB will now provide $500 a week for those individuals.