The Canada Workers Benefit Will Give Eligible Canadians Up To $2,400 — Here's How It Works

Canadian families and single Canadians are eligible!

Assistant Editor, MTL Blog
Chrystia Freeland at a press conference with Justin Trudeau behind her. Right: Various values of Canadian currency.

Chrystia Freeland at a press conference with Justin Trudeau behind her. Right: Various values of Canadian currency.

The federal government updated the Canada Workers Benefit (CWB) back in 2021 and today, over three million Canadians are now eligible for the refundable tax credit — and you could be eligible for up to $2,400.

While tax season can be tough enough, knowing what you are eligible to receive from the Government of Canada is pretty handy information, and we're making it a little easier to keep up with what you may be entitled to.

The Canada Workers Benefit has been set in place to help supplement the earnings of low-income Canadians. For Canadian families who are eligible, they could receive up to $2,400, whereas single individuals who qualify can expect a maximum amount of $1,400.

Want to know if you're eligible and how you can go about claiming the Canada Workers Benefit? Here are all the details you need to know.

Who is eligible?

The Government of Canada has listed the eligibility requirements for the Canada Workers Benefit to those who:

  • Earn working income
  • Are a resident of Canada throughout the year
  • Are 19 years of age or older on December 31, or live with their spouse or common-law partner or their child
You are not eligible for the Canada Workers Benefit if you:
  • Are enrolled as a full-time student at an educational institution for more than 13 weeks in the year unless, on December 31, you have an eligible dependent
  • Are confined to a prison or similar institution for a period of at least 90 days during the year
  • Do not have to pay taxes in Canada because you're an officer/servant of another country, or you are a family member or employee of that person

How much can you receive?

The Canada Workers Benefit is currently divided into two parts: basic amounts and disability supplements.

Since expanding eligibility, the Government of Canada is making the Canada Workers Benefit available to those with incomes up to:

  • $32,244 as single Canadians, without children;
  • $42,197 as single-earner families; and
  • $56,197 as double-earner families.

The expansion also includes a new provision, which accords to the federal government, allows secondary earners in couples to "exclude up to $14,000 of their working income when calculating the benefit, allowing them to access a more generous tax refund."

The basic maximum amount that Canadians could receive is $1,395 for single individuals and $2,403 for families.

The maximum basic Canada Workers Benefit amount varies for residents of Quebec. It's also important to note for single Canadians that the amount is gradually reduced if your net income is more than $22,944, and no amount is to be paid if your net income is more than $32,244.

For Canadian families, the amount is gradually reduced if your family net income is more than $26,177, and no amount will be paid if your family net income is more than $42,197.

The maximum amount for the disability supplement is $720 for single individuals and families.

How the CRA calculates your payment amount

If you're eligible, the Canada Revenue Agency will calculate your payment amounts using the following information:

  • Marital status - eligible spouse
  • Province or territory of residence
  • Earned working income
  • Adjusted family net income
  • Eligible dependents
  • Eligibility for the disability tax credit

Canadians can also use the government calculation sheet to get an estimate of how much they qualify for.

How to apply & when do you receive the CWB?

Canadians who are eligible for the refundable tax credit should claim the CWB at the same time they complete their individual income taxes.

Canadians can request up to half of the Canada Workers Benefits in advance payments. The payments are usually sent out on the fifth day of the following months:

  • April
  • July
  • October
  • January
Additionally, eligible Canadians can also look into applying for the Canada Workers Benefit through this online form.

This article's cover image was used for illustrative purposes only.

Mike Chaar
Assistant Editor, MTL Blog
Mike Chaar is an Assistant Editor for MTL Blog focused on recalls in Canada and is based in Montreal, Quebec.
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