The Canadian Government has enhanced the Canada Workers Benefit (CWB) by announcing 1.7B in additional support in their new Affordability Plan. The CWB is a refundable tax credit available for low-income individuals in the workforce. You may qualify for additional payments like disability supplement. You have to earn no less than $3,000 to qualify, however, the maximum income level is different in each province. If you are eligible, you can expect to receive up to $1,200 as a refundable tax credit when you file your tax return. Receive your payments in advance by completing Form RC201 (Canada Workers Benefit Advance Payment Application), by applying in My Account, or by contacting the CRA.
Are You Eligible?
To be eligible for the CWB, you must meet the following criteria:
- Be at least 19 on Dec. 31.
- Be a Canadian resident for tax purposes during the year.
If you under age 19, you may still qualify for the CWB provided you have a spouse or common-law partner or a dependant under age 19 who lives with you. If you have a spouse, only one of you can apply for the CWB. Register your dependant by completing Form RC66, Canada Child Benefits Application. You do not need to register your dependant if she/he is already registered for the goods and services tax/harmonized sales tax credit.
You do not qualify for the CWB in the following situations:
- You are a full-time student at a designated college or university, at least 13 weeks in the tax year, and you do not have a qualifying dependant.
- You spent at least 90 days in jail in the tax year.
- You are not required to pay Canadian income tax because you represent another country, such as being a diplomat, or you are related to such a person.
If you qualify for the CWB and disability amount, you may also be able to claim an additional disability supplement. To qualify, you must have a working income of at least $1,150 and file Form T2201, Disability Tax Credit Certificate, with the Canada Revenue Agency. If you do not have an approved Form T2201 on file, you must send it in to receive the disability supplement.
Claim the CWB
To determine your CWB tax credit, fill out Schedule 6, Working Income Tax Benefit, for the province or territory where you reside for tax purposes. The CWB amount determined on Schedule 6 is claimed on line 45300 of your tax return:
- Canada Workers Benefit (for all except QC, AB, and NU)
- Canada Workers Benefit (for QC only)
- Canada Workers Benefit (for AB only)
- Canada Workers Benefit (for NU only)
CWB Advance Payments
If you are eligible, you may apply for advance payments of the CWB. Advance payments equal up to 50 percent of your expected CWB for the year; this also includes any disability supplement you receive. Any CWB amount you qualify for, but did not receive in advance, is paid to you when your tax return is assessed by the Canada Revenue Agency.
To start receiving advance payments, you must apply every single year between Jan. 1 and Sept. 1. Complete Form RC201, Canada Workers Benefit Advance Payments Application, to indicate you want to receive your payment in advance.
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