COVID-19: Canada's Support for Individuals
Note: the following article was up-to-date as of date-of-publication. Further program changes may have occurred at a later date, which are not necessarily reflected in the summary below
In response to the COVID-19 pandemic, the Canadian federal government has stepped up with a range of programs to help businesses and individuals through the financial impacts of the pandemic fallout. In addition to the CRA declaring their flexibility towards tax filing and payment deadlines, Canada’s stimulus programs for individuals, announced as of March 2020, include the following:
(For a listing of business related stimulus programs, refer to our COVID-19: Canada's Support for Businesses post).
Canada Emergency Response Benefit (“CERB”): will provide a taxable benefit of $2,000 a month for up to 4 months to “eligible workers.” The CERB program will be available to both EI eligible and non-EI eligible workers (ie. contract workers, self-employed)
Mortgage Default Management (“MDM”): Stimulus programs via Canada Mortgage and Housing Corporation (“CMHC”) and other mortgage insurers are enabling homeowners with options for payment deferral, loan re-amortization, capitalization of outstanding interest arrears and other eligible expenses, and special payment arrangements
Canada Child Benefit (“CCB”): extra $300 per child through the CCB. This will mean approximately $550 more for the average family
Special Goods and Services Tax (“GST”) credit payment: one-time special payment starting April 9 for low- and modest-income families. The average additional benefit will be close to $400 for single individuals and close to $600 for couples
Support for Seniors: reduced required minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25% for 2020
Support for Students and Recent Graduates: effective March 30, 2020, a six-month interest-free moratorium on the repayment of Canada Student Loans for all student loan borrowers
Questions in how the above matter may relate to you? Reach out to Blumenfeld Woznica & Co to see how this matter may impact your specific accounting and/or tax situation.
This publication is provided as an information service and may include items reported from other sources. We do not warrant its accuracy. This information is not meant as account/tax opinion or advice.