Years after the Canada Emergency Response Benefit ended, many Canadians are still receiving repayment notices. Here's what you need to know about CERB debt in 2025.
The Canada Emergency Response Benefit (CERB) was a federal emergency income support program launched in March 2020 during the COVID-19 pandemic. It paid $2,000 every 4 weeks (up to $500/week) to Canadians who stopped working or had their income significantly reduced because of COVID-19.
CERB ran from March 15 to September 26, 2020. Over 8.9 million Canadians received CERB payments totalling more than $81 billion. The CRA and Service Canada then spent years verifying eligibility and recovering overpayments.
The most common reasons Canadians were asked to repay CERB include:
To qualify for CERB, you needed to have earned at least $5,000 in 2019 or in the 12 months before applying. The CRA initially used gross income for self-employed applicants, then reversed course and required net income — catching many self-employed workers off guard. After significant backlash, the CRA confirmed it would not pursue repayment from self-employed workers who applied in good faith based on the original gross income guidance.
CERB recipients could earn up to $1,000 in a 4-week period while still receiving benefits. Those who earned more than $1,000 in any CERB period were not eligible for that payment and must repay it.
Some applicants accidentally applied through both portals and received double payments. Both payments must be repaid if only one was the correct application.
Some applicants continued working reduced hours but did not fully stop working, which was a requirement in some CERB periods.
There are several ways to check your CERB repayment status in 2025:
CRA can offset future benefits: If you owe CERB money and don't arrange to repay it, the CRA can withhold future tax refunds, GST credits, CCB payments, and other government benefits to recover the debt. It's always better to contact CRA proactively.
Log into CRA My Account and use the payment options to pay your outstanding balance directly from your bank account.
Add "Canada Revenue Agency" as a payee in your online banking. Use your SIN as the account number. Select "COVID-19 — Canada Emergency Response Benefit repayment" as the payment type.
You can repay CERB at most Canadian banks and credit unions. Bring your SIN and the amount you wish to repay.
If you cannot pay the full amount at once, contact CRA to set up a payment arrangement. CRA generally allows flexible repayment plans based on your financial situation. Call 1-888-863-8662 to discuss a payment plan.
Hardship provisions: CRA has indicated it will work with Canadians experiencing financial hardship. If you genuinely cannot afford to repay, contact CRA and explain your situation. They have hardship relief provisions and may reduce or waive interest charges in some cases.
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Get KOHO Free — Use Code 45ET55JSYAHow you handle CERB repayment affects your tax situation:
| Situation | Tax Treatment |
|---|---|
| You received CERB in 2020 and paid tax on it | If you repay in 2025, you may be able to claim a deduction on your 2025 return |
| You repay CERB in the same year you received it | The repayment is deducted from your income — you pay tax only on net amount received |
| CRA offsets your tax refund for CERB debt | Your refund is reduced by the debt — you don't receive a separate payment |
If you repay CERB that you already paid tax on in a prior year, you can claim a deduction on your return for the year of repayment. CRA will issue a T4A slip showing the repayment amount.