In Canada, the resilience and hard work of millions of lower-income workers are the backbone of our communities. To offer a financial boost to those contributing tirelessly each day, the Canada Revenue Agency (CRA) created the Advanced Canada workers benefit, or ACWB.
Grab a cup of coffee, and let’s dive into the world of ACWB—your potential ticket to a more comfortable financial cushion. We explain what this benefit is all about and who’s eligible, and we offer some savvy tips to make the most of it when you file your taxes.
- The Canada workers benefit (CWB) and the Advanced Canada workers benefit (ACWB) provide financial assistance to low-income individuals and families. With the ACWB, eligible recipients can receive a portion of their benefit in advance.
- The amount you can receive from the CWB and the ACWB varies based on income, marital status, and dependents.
- The only way to claim the CWB and the ACWB is by filing your tax return before November 1.
What is the ACWB and what does it stand for?
The Advanced Canada workers benefit (ACWB) is a government initiative to provide financial aid to low-income workers. The ACWB is a spinoff of the broader Canada workers benefit (CWB).
The “advanced” aspect of the ACWB refers to the method of payment: eligible recipients can receive a portion of their benefit in advance—typically distributed in instalments throughout the year—rather than waiting for a lump-sum payment after filing their annual tax return, like they would with the CWB option.
This early access to funds provides immediate financial assistance to low-income workers, helping them manage their expenses more effectively throughout the year.
Who is eligible for the CWB and the ACWB?
The CWB and the ACWB are available to those who earn low incomes but are actively employed. Eligibility for the CWB and the ACWB is based on specific income thresholds, which vary depending on whether taxpayers are single or have a family.
To qualify for the ACWB, individuals without children must earn less than $33,015 in all provinces except Alberta, Quebec, and Nunavut. To receive ACWB payments in these provinces, a taxpayer without children must earn:
- Less than $29,072.64 in Quebec
- Less than $58,925 in Nunavut
- Less than $33,093 in Alberta
The net income cutoff level is different for families and households with children. Please see this chart on the CRA website for more information.
How to apply for the ACWB
If you’ve filed your tax return by November 1, you’re automatically considered for the benefit, so you don’t need to apply. Filing a tax return is the only way to apply for the ACWB, so submit your return and make sure it is as complete as possible.
If you’re using tax software, the required CWB Schedule 6 will automatically be completed. But if you’re filing a paper return, you can find the schedule here.
Ensure your tax information is accurate and up-to-date to maximize your chances of receiving the ACWB. To continue receiving the benefit as long as it’s available, file each year’s tax return as it comes due.
How much is the Advanced Canada workers benefit?
The current maximum payment amount for single people is $1,428 per year ($2,461 for families); however, the amount of the Advanced Canada workers benefit payment varies based on several factors, including your income level, marital status, and whether you have dependants.
Maximum and minimum amounts are set by the government each year, so staying up to date on the latest information is key to understanding your personal ACWB amount.
ACWB payment deadlines and amounts
The ACWB payment dates for 2024 are January 12, July 12, and October 11. Referring to your ACWB notice (provided by the CRA as part of your Notice of Assessment) can help you monitor your personal finances effectively.
The Advanced Canada workers benefit is more than just a financial aid; it’s a tool that empowers low-income workers to achieve greater financial stability. By understanding your eligibility, the application process, and the payment details on your ACWB notice Canada, you can ensure you’re maximizing this benefit. When in doubt, TurboTax is there to support you.
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