Canada Workers Benefit
Published on August 25, 2022
Updated on October 28, 2024
by Deborshi Choudhury
Deborshi Choudhury, an IRS Enrolled Agent with 17 years of expat tax experience, specializes in U.S. tax preparation, tax planning, and tax advice for U.S. citizens and Green Card holders living and working in the UAE and Canada.
Table of Contents
What is the Canada Workers Benefit?
The Canada Workers Benefit (CWB) is a refundable tax benefit extended to low-income families living in Canada. This benefit has two parts: a basic amount and a disability supplement.
The Canadian government first introduced this under the Workers Income Tax Benefit (WITB), which was changed to CWB in 2018. This is to encourage residents to enter the workforce and support low-income individuals.
Who can qualify for the Canada Workers Benefit?
You can claim CWB if you meet the following requirements:
- Resident of Canada throughout the year.
- You are 19 years old and above, or you live with your spouse, common-law partner, or child.
- Individuals and families with a net income below the net income level of your location.
Is my spouse qualified for the Canada Workers Benefit?
Your spouse is eligible if they meet the following conditions:
- They live with you as your spouse or common-law partner on December 31, 2023.
- They are a resident of Canada throughout the year.
- They are not a full-time student.
- They were not confined to a prison or similar institution for at least 90 days during the year.
- They were not exempt from income tax in Canada if, at any time during the year, they were a diplomat, an employee of another country living in Canada, or a family member or employee of such a person.
If you have an eligible spouse, either of you can claim the basic CWB amount.
Is my dependent qualified for the Canada Workers Benefit?
Your dependent is eligible if they meet the following conditions:
- They were your or your spouse’s or common-law partner’s child.
- They were under 19 and lived with you on December 31, 2023.
- They were not eligible for the CWB for 2023.
If you have an eligible dependent, only one person can claim the basic CWB for that eligible dependent.
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What is the disability supplement on CWB?
It is an additional financial support of the Canada Workers Benefit designed to benefit low-income taxpayers who also have a disability.
Generally, you must be eligible for and approved for the Disability Tax Credit (DTC), a separate tax credit for individuals with physical or mental impairment that significantly restricts their ability to perform daily activities.
How much can I get for the Canada Workers Benefit?
For the year 2024:
Status |
Income Threshold |
Basic benefit maximum amount |
Individuals |
CAD$24,975 – $35,095 |
CAD$1,518 |
Families |
CAD$28,494 – $45,934 |
CAD$2,616 |
The maximum basic CWB amount will vary for residents of Quebec, Nunavut, and Alberta.
What factors make me ineligible for Canada Workers Benefit?
You will not be eligible to receive Canada Workers Benefit if you:
- Are a full-time student.
- Have spent time in prison for 90 days or more in a year.
- Are a diplomat, servant, or officer of another country. The family of such an individual is also not eligible.
- Non-resident of Canada.
How do I receive the Canada Workers Benefit?
The Canada Workers Benefit is claimed on your annual income tax return at the time of tax filing.
- File your tax return: You can do this electronically or by pen and paper.
- Complete schedule 6: For the Canada Workers Benefit and attach it to your tax return.
- Apply for disability supplement: If you qualify for the Disability Tax Credit, check the relevant box in Schedule 6 to get the CWB disability supplement.
- Sign and submit: Sign and date your tax return and submit it to the Canada Revenue Agency (CRA).
It is important to note that you need to file a return even if you don’t owe any taxes to receive the benefit. The amount will be applied to your total tax refund or used to reduce any taxes you owe.
How will the government determine my Canada Workers Benefit amount?
The Canadian Revenue Agency (CRA) will consider the following when assessing your eligibility:
- Marital status – eligible spouse.
- The province or territory where you live.
- Total income earned and adjusted family income.
- Eligible dependents, if any.
- Disability tax credit eligibility.
If you know your income numbers, you could use the CRA’s online eligibility calculator. You’ll need to select your province first, as calculations vary depending on your geography within Canada.
Can I get advance payments for my Canada Workers Benefit?
Yes, you can receive advance payments on CWB to access some of your benefits. You can receive part of your CWB throughout the year instead of waiting until tax season to file your taxes.
Advance payment schedule
Advance payments will be dispersed quarterly; the total amount can be up to 50% of your CWB. Then, the remaining amount will be paid to you when you file your annual income tax return.
You can expect them in April, July, October, and January.
How do I apply for CWB advance payments?
You don’t need to apply for advance Canada Workers Benefit (CWB) payments. When you file your income tax return, the CRA will automatically assess your eligibility.
If you qualify for the benefit, the CRA will send you advance payments automatically. It is important to note that to receive the advanced payments, you need to make sure to file your tax return before November 1 of the benefit period.
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