Amidst the escalating economic challenges, the Government of Canada offers a range of federal benefits and credits to provide support, particularly for families facing financial strain.
The Canada Workers Benefit (CWB) stands as a refundable tax credit designed to assist individuals and families with low incomes who are actively employed. With the surge in inflation, rising rents, and soaring grocery costs, many Canadian families experiencing economic pressure are actively seeking financial relief and the CWB could offer assistance.
It's important to verify your eligibility as you can be entitled to $2,400 for families or $1,400 for individuals.
Here's everything you need to know about the Canada Workers Benefit, who is eligible, how much you can get and when payments go out in 2024.
What is the Advanced Canada Workers Benefit (ACWB)?Â
According to the Canada Revenue Agency (CRA), the Canada Workers Benefit serves as a refundable tax credit designed to assist individuals and families with low incomes who are actively employed.
Comprising two components, the CWB includes a basic amount and a disability supplement. Starting in July 2023 and based on the 2022 taxation year, the CWB will provide advance payments equal to 50% of the CWB across 3 payments under the Advanced Canada Workers Benefit (ACWB), the CRA said.
Who is eligible for the Canada Workers Benefit?
Per the CRA, you may be entitled to the basic amount, the disability supplement portion, or both.
You are eligible for the basic amount of the CWB if you meet all the following conditions:
- Earn working income and your net income is below the net income level set for your province or territory of residence
- A resident of Canada throughout the year
- 19 years of age or older on December 31, or you live with your spouse or common-law partner or your child
You are not eligible for the CBW if any of these apply:
- Are enrolled as a full-time student at a designated educational institution for more than 13 weeks in the year unless, on December 31, you have an eligible dependant
- Are confined to a prison or similar institution for at least 90 days during the year
- Do not have to pay tax in Canada because you are an officer or servant of another country, such as a diplomat, or you are a family member or employee of that person
As for the disability supplement, you may be eligible if you meet all of the following conditions:
- You are eligible for the disability tax credit and have an approved Form T2201, Disability Tax Credit Certificate, on file with the CRA
- Your net income is below the net income level set for your province or territory of residence
How to claim the Canada Workers Benefit?
According to the CRA, you can claim the Canada Workers Benefit when you file your tax return.​
To claim the CWB, you must either:
- Do your taxes electronically and follow the instructions in your certified tax software
- If filing a paper return, fill out and submit Schedule 6, Canada Workers Benefit
If you or your eligible spouse qualifies for the disability tax credit, the eligible individual should claim both the basic amount and the disability supplement. If both you and your eligible spouse are entitled to the disability tax credit, only one of you can claim the basic amount. However, each of you must separately claim the disability supplement on a distinct Schedule 6, the CRA indicated.
For those receiving payments under the Advanced Canada Workers Benefit, it's important to note that your payments will be sent out automatically. The CRA stated that there is no need to submit a separate application to receive advanced payments. The CRA will assess your eligibility when you file your income tax and benefit return.
If you qualify for a CWB amount indicated on line 45300 of your return, the CRA will initiate automatic payments. For timely receipt of advanced payments, the CRA must receive your income tax and benefit return before November 1st of the benefit period.
How much can you get from the Canada Workers Benefit?
Per the CRA, the maximum basic amount for the CWB for single individuals is $1,428. The amount is gradually reduced if your adjusted net income is more than $23,495. No basic amount is paid if your adjusted net income is more than $33,015.
The maximum basic amount for the CWB for families is $2,461. The amount is gradually reduced if your adjusted family net income is more than $26,805. No basic amount is paid if your adjusted family net income is more than $43,212.
The disability supplement maximum is $737 for both single individuals and families. For single individuals, the supplement decreases gradually if the adjusted net income exceeds $33,018, and no supplement is paid if the income exceeds $37,932. For families, the supplement is reduced if the adjusted family net income surpasses $43,210.
More on Canada Workers Benefit payment amounts
When are the Canada Workers Benefit payment dates?
The Canada Workers Benefit is sent out in three separate payments throughout 2024, the dates are as follows:
- January 12, 2024
- July 12, 2024
- October 11, 2024
This article's cover image was used for illustrative purposes only.
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