A letter from the CRA with a cerb repayment request is stressful, confusing, and for many Canadians, completely unexpected. You are not alone. As of December 2025, close to 1.4 million Canadians have repaid about $3.3 billion in COVID-19 benefits, but hundreds of thousands more are still being contacted about debts they may owe. The CRA is actively pursuing these repayments and the pressure is increasing. Understanding exactly where you stand and what your options are is the first step to getting this resolved.
Why Are Canadians Being Asked to Repay CERB?
CERB paid $500 per week to Canadians who lost work during the pandemic. The program paid out $81.6 billion in benefits to nearly 9 million people. To get money into people’s hands quickly, the government used an attestation-based approach, meaning applicants self-declared their eligibility rather than having it verified upfront. The CRA then conducted post-payment reviews.
The most common reasons Canadians are being asked to repay include returning to work earlier than expected, earning more income than anticipated during the benefit period, receiving CERB from both Service Canada and the CRA for the same period, or not meeting the $5,000 income threshold required to qualify.
For self-employed individuals, there was significant confusion around whether the $5,000 threshold referred to gross or net income. The federal government later clarified that self-employed Canadians whose net self-employment income was below $5,000 but whose gross income was at least $5,000 would not be required to repay, as long as they met all other eligibility criteria.
How Much Is Still Outstanding?
About $14 billion in COVID-related benefits was given to individuals that the CRA says, upon review, did not qualify because they did not meet the income requirements. Most of that money was given under CERB or the Canada Recovery Benefit. The CRA has recouped a portion of that but $10 billion is still outstanding.
This is not going away. The CRA has publicly stated that repayment conversations could last until 2030. If you received a letter and have not responded, the situation is not resolving itself.
What Can the CRA Do If You Don't Repay?
Understanding your cerb repayment obligations before the CRA escalates is critical. Starting in July 2024, for individuals who have not responded or cooperated, and who have been determined to have the financial capacity to pay, legal warnings have been issued and legal measures can be taken to recover amounts owed.
In practical terms, the CRA can withhold your tax refunds and GST/HST credits until the debt is paid. If you are receiving EI benefits, your CERB repayment can be taken by Service Canada at source at 50% of your benefit. The CRA can also garnish wages or freeze bank accounts for individuals who do not cooperate.
The one piece of good news: there are no penalties and no interest on emergency benefit overpayment debts. The amount you owe is the amount you received that you were not eligible for, nothing more.
What Are Your Options?
Pay in full
For many Canadians, the simplest way to resolve a cerb repayment is to pay the full amount at once. You can repay online through CRA My Payment, through your bank’s online bill payment by searching for “Canada emergency benefit repayment,” by mail, or in person at a Canada Post location using a QR code.
Set up a payment arrangement
If you cannot pay the full amount at once, contact the CRA to set up a payment arrangement. The CRA will help you arrange a repayment plan in a way that is affordable for you. Call the CRA at 1-833-253-7615, Monday to Friday, 7 a.m. to 8 p.m. ET.
Request a second review
If you believe the CRA’s determination is wrong, you have the right to dispute it. For CERB and CRB overpayments, you can request a second review within 30 days of the notice. If still denied, you can apply for Federal Court judicial review within 30 days of that decision. This is a process that benefits significantly from professional support, as the timelines are strict and the documentation requirements are specific.
Apply for taxpayer relief
If repayment is genuinely not financially possible, you can apply for taxpayer relief. If you cannot pay your tax debt due to events beyond your control, like a serious illness, natural disaster, or loss of employment, you may apply for tax relief, which can waive or cancel penalties or interest. A tax professional can assist with this application.
Consumer proposal
For larger CERB debts that are creating serious financial hardship, it may be possible to negotiate with the CRA about the amount owed by filing a consumer proposal, a legal form of debt forgiveness sanctioned by the Bankruptcy and Insolvency Act that provides protection from creditors, lawsuits, or wage garnishments. This involves working with a Licensed Insolvency Trustee.
What Should You Do If You Receive a CRA Letter?
The single biggest mistake people make with CERB repayment notices is doing nothing. Ignoring a CRA letter does not make the debt disappear. It escalates the situation and limits your options.
If you receive a Notice of Redetermination or a collection letter from the CRA, the right steps are to read the letter carefully and note any response deadlines, check your original CERB application against the eligibility criteria, gather any documentation that supports your eligibility, and contact the CRA or a tax professional before the deadline passes.
A CERB letter might feel like a paperwork hassle, but for many small business owners, it can become the entry point to a broader tax review. If you are a business owner who received pandemic benefits, getting ahead of this proactively is worth doing.
If you have received a CERB repayment notice and are unsure how to respond, or if you believe the amount the CRA is claiming is incorrect, speaking with a tax professional before taking any action is the most important step you can take.