Updated Income Tax Estimator Deals with Canada Recovery Benefit (CRB) Clawback

Walter Harder

When the new Canada Recovery Benefits become available later this month, it will come with a cost.  If the recipient’s net income for the year from other sources exceeds $38,000, they will be required to repay 50% of the lesser of the CRB received and their net income in excess of $38,000. 

This clawback will work much like the clawback of Employment Insurance for frequent users except that the rate is 50% and will apply to all recipients whose other income exceeds $38,000.

The clawback amount will be added to their taxes owing for the year.  Of course, the individual also be entitled to a deduction for the amount of CRB clawed back.

The latest version of Knowledge Bureau’s Income Tax Estimator does these computations for you allowing you to advise your clients on their income tax liability for 2020.

Why are Knowledge Bureau’s RWM™ Calculators Invaluable?

“The Financial Discovery Tool is a great practice management tool that can be use during client discovery and re-discovery meetings, to help guide you and your clients through the five steps of the Real Wealth Management™ Process. Furthermore, the RWM™ Framework diagram adds multi-stakeholder dimensions to the client discovery, welcoming multi-generational wealth planning and a collaborative multi-advisor approach to Real Wealth Management™. Finally, the printable output provides a simplified meeting summary which can be used as part of the Know Your Client (KYC) compliances requirements and can be used as a client “RWM™ Plan Score Card”.”

– Kristin Ramlal, B.Comm (Hons), PFP, CIM, FCSI, RWM™.
Canada Life Securities Specialist and Credential QTrade Advisor

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