Joined: Mar 2009
Posts: 5039
non refundable tax credits
3/13/2021 at 12:07 PM
Neither example cited above are particularly high income scenarios.
Don't forget that the personal amount, the basic non-refundable tax credit, was $13,229 in 2020. That means there *is* no federal income tax paid on the first $13,299 of income (from any taxable source) received in 2020.
So in the OP's numbers, with $19,688, only ($19,688-$13,299) $6,389 is going to have any taxes applied to them after the basic personal amount is taken into account. But if there's other earned (employment income), you'll have source deductions to apply to that too, like income tax, CPP contributions, EI contributions, etc.
So it's seems very plausible that the situation is exactly like they described. Good news for people who were expecting huge tax bills due to CERB.