Up to three million Canadians will receive more financial support, according to the government!
The enhanced benefit comes as part of the federal government's new Affordability Plan, which aims to "make life more affordable for millions of Canadians," particularly as inflation rates continue to rise.
\u201cYesterday, we released our government's #AffordabilityPlan. It includes new, tangible support and our plan will put more money in the pockets of Canadians.\u201d— Chrystia Freeland (@Chrystia Freeland) 1655499198
This new change will allow eligible workers to get up to $1,200 more in financial support this year. Eligible couples could receive an extra $2,400, according to the government.
The enhancement is costing the Government of Canada a total of $1.7 billion this year and will help an estimated three million Canadians.
So, what exactly is the Canada Workers Benefit, who is eligible, and how much can you receive?
What is the Canada Workers Benefit?
According to the Department of Finance, the "Canada Workers Benefit is a refundable tax credit available to eligible lower-income Canadians to help ease the cost of living."
It's divided up into two parts:
- a basic amount
- a disability supplement
Who is eligible for the Canada Workers Benefit?
To be eligible for the benefit, according to the government, an individual has to be a full-time resident of Canada, earn a working income, and be 19 years old or older on December 31 or live with their spouse, common-law partner, or child.
An individual is not eligible for the benefit if they:
- "are enrolled as a full-time student at an educational institution for more than 13 weeks in the year" (except for those who had an eligible dependent on December 31);
- "are confined to a prison or similar institution for a period of at least 90 days during the year;"
- or don't pay taxes in Canada because they are "an officer/servant of another country" (the government gives the example of a diplomat) or a "family member or employee" of such a person.
Since expanding eligibility, the Government of Canada is making the Canada Workers Benefit available to those with incomes up to:
- $32,244 for single individuals, without children;
- $42,197 in single-earner families; and
- $56,197 in double-earner families.
How much money can you receive?
With the enhanced Canada Workers Benefit, the basic maximum amount that Canadians could receive is $1,395 for single individuals and $2,403 for families.
"Most recipients are just receiving this additional support through their 2021 tax return," Finance Canada stated.
This article’s cover image was used for illustrative purposes only.