Key Takeaway Box:
- The Canada Workers Benefit (CWB) is a refundable tax credit for low-income individuals and families who work.
- The CWB has two parts: a basic amount and a disability supplement.
- You can claim the CWB when you file your income tax return or receive advance payments starting in July 2023.
- To be eligible for the CWB, you must meet certain income and residency requirements, and not be a full-time student or a prisoner.
- The amount of CWB you can get depends on your income, marital status, province of residence, and disability status.
- You can check your payment status online using My Account or by calling the CRA.
Are you working hard to make ends meet, but still struggling to pay your bills? Do you wish you had some extra money to cover your expenses and save for your future? If you answered yes, then you might be eligible for the Canada workers benefit (CWB).
The CWB is a refundable tax credit that helps low-income workers and their families. It is designed to encourage and reward work and to reduce poverty. The CWB can provide you with up to $1,428 if you are single, or up to $2,461 if you have a spouse or a dependant¹.
In this article, we will explain everything you need to know about the CWB, including:
- When it will be imparted
- Who are eligible
- How you can get it
- How to check your payment status
- How much you will receive
By the end of this article, you will have a clear idea of whether you qualify for the CWB, and how to claim it. So, let’s get started!
When It Will Be Imparted?
The CWB is paid to you in two ways: as a lump sum when you file your income tax return, or as advance payments throughout the year.
If you file your income tax return and claim the CWB, you will receive the full amount of the credit as a refund after your return is processed. This means that you will get a single payment for the CWB, usually within eight weeks of filing your return².
However, starting in July 2023, you can also receive the CWB as advance payments, based on your 2022 income tax return. The advance payments will be equal to 50% of the CWB, and will be paid in three instalments: in July, October, and January¹. This way, you can get some of the CWB money earlier, and have a more stable income throughout the year.
To receive the advance payments, you do not need to apply. If you are eligible for the CWB based on your 2022 income tax return, you will automatically receive the advance payments. However, you can opt out of the advance payments if you prefer to receive the full amount of the CWB when you file your 2023 income tax return¹.
Who Are Eligible?
To be eligible for the CWB, you must meet certain criteria related to your income, residency, age, and other circumstances.
First, you must earn working income and have a net income below the threshold set for your province or territory of residence. Working income includes income from employment, self-employment, or disability benefits. Net income is your total income minus any deductions, such as RRSP contributions, child care expenses, or alimony payments. The table below shows the net income thresholds for each province and territory for the 2022 tax year.
| Province/Territory | Single | Family |
| Alberta | $25,506 | $37,548 |
| British Columbia | $25,506 | $37,548 |
| Manitoba | $25,506 | $37,548 |
| New Brunswick | $25,506 | $37,548 |
| Newfoundland and Labrador | $25,506 | $37,548 |
| Northwest Territories | $25,506 | $37,548 |
| Nova Scotia | $25,506 | $37,548 |
| Nunavut | $25,506 | $37,548 |
| Ontario | $25,506 | $37,548 |
| Prince Edward Island | $25,506 | $37,548 |
| Quebec | $25,506 | $37,548 |
| Saskatchewan | $25,506 | $37,548 |
| Yukon | $25,506 | $37,548 |
Second, you must be a resident of Canada throughout the year. This means that you have a home, a spouse, or a dependant in Canada, and that you have significant ties to the country.
Third, you must be 19 years of age or older on December 31, or you must live with your spouse or common-law partner or your child. If you are under 19, you can still claim the CWB if you have an eligible dependant. An eligible dependant is your or your spouse’s or common-law partner’s child who is under 19 and lives with you on December 31¹.
Finally, you are not eligible for the CWB if any of the following applies to you:
- You are enrolled as a full-time student at a designated educational institution for more than 13 weeks in the year, unless you have an eligible dependant
- You are confined to a prison or similar institution for a period of at least 90 days during the year
- You do not have to pay tax in Canada because you are an officer or servant of another country, such as a diplomat, or you are a family member or employee of such a person.
IMPORTANT LINKS:
- What Expenses Can You Deduct from Your Rental Income? (Updated 2024)
- How to Get Your EITC Refund Faster in 2024
- CPP, RRSP, TFSA, FHSA, AMT and OAS Changes: What You Need to Know for 2024
- What Happens to Your CPP and OAS Benefits When Your Spouse Dies?
- How to Get the Grocery Rebate Payments in Canada in January 2024
Here’s How You Can Get $2,400 Workers Benefit
If you meet the eligibility criteria for the CWB, you can get up to $2,400 in workers benefits, depending on your income, marital status, province of residence, and disability status.
The CWB has two parts: a basic amount and a disability supplement. The basic amount is the main part of the CWB, and it is calculated based on a formula that takes into account your working income, your net income, and your family situation. The disability supplement is an additional amount that you can get if you are eligible for the disability tax credit (DTC) and have an approved Form T2201, Disability Tax Credit Certificate, on file with the CRA¹.
To get the CWB, you have to claim it when you file your income tax return. You can use the Schedule 6, Canada Workers Benefit, to calculate the amount of CWB you are entitled to, and enter it on line 45300 of your return. Alternatively, you can let the CRA calculate the amount of CWB for you by checking the box on line 45310 of your return¹.
If you are eligible for the advance payments of the CWB, you will receive them automatically in your bank account or by cheque, based on your 2022 income tax return. However, you still have to file your 2023 income tax return and claim the CWB, as the CRA will reconcile the amount of advance payments you received with the amount of CWB you are entitled to. If you received more advance payments than you should have, you will have to repay the excess amount. If you received less advance payments than you should have, you will get the difference as a refund¹.
How To Check Payment Status?
If you want to check the status of your CWB payment, whether it is a lump sum or an advance payment, you can do so online or by phone.
To check online, you need to log in to My Account, a secure portal that lets you access your personal tax and benefit information. Once you are logged in, you can view your CWB details, such as the amount, the date, and the method of payment. You can also change your address, your direct deposit information, or your marital status, if needed⁴.
To check by phone, you need to call the CRA’s automated service at 1-800-959-8281. You will need your social insurance number, your date of birth, and the amount you entered on line 15000 of your 2019 or 2020 income tax return. You can then follow the instructions to get information about your CWB payment⁵.
How Much Workers Benefit Will Be Received?
The amount of CWB you will receive depends on several factors, such as your income, your marital status, your province of residence, and your disability status. The CWB is calculated using a formula that takes into account these factors, and it is reduced as your income increases.
The table below shows the maximum amounts of CWB you can get for the 2022 tax year, based on your family situation and your province or territory of residence¹.
| Province/Territory | Single | Family |
| Alberta | $1,428 | $2,461 |
| British Columbia | $1,428 | $2,461 |
| Manitoba | $1,428 | $2,461 |
| New Brunswick | $1,428 | $2,461 |
| Newfoundland and Labrador | $1,428 | $2,461 |
| Northwest Territories | $1,428 | $2,461 |
| Province/Territory | Single | Family |
| Nova Scotia | $1,428 | $2,461 |
| Nunavut | $1,428 | $2,461 |
| Ontario | $1,428 | $2,461 |
| Prince Edward Island | $1,428 | $2,461 |
| Quebec | $1,428 | $2,461 |
| Saskatchewan | $1,428 | $2,461 |
| Yukon | $1,428 | $2,461 |
If you are eligible for the disability supplement, you can get an additional amount of up to $713 if you are single, or up to $1,054 if you have a spouse or a dependant. The disability supplement is also calculated based on a formula that takes into account your working income, your net income, and your family situation.
To get an estimate of how much CWB you can get, you can use the CWB calculator on the CRA website. You will need to enter some information about your income, your marital status, your province of residence, and your disability status. The calculator will then show you the amount of CWB you can expect to receive, both as a lump sum and as advance payments.
Conclusion
The Canada workers benefit is a refundable tax credit that helps low-income workers and their families. It can provide you with up to $2,400 in workers benefit, depending on your income, your marital status, your province of residence, and your disability status. You can claim the CWB when you file your income tax return, or receive advance payments starting in July 2023. You can check your payment status online or by phone, and use the CWB calculator to estimate how much you can get.
If you are a low-income worker, the CWB can help you improve your financial situation and reward your hard work. So, don’t miss out on this opportunity and claim your CWB today!
Source: (1) Canada workers benefit – Canada.ca. https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-workers-benefit.html. (2) Who is eligible – Canada workers benefit – Canada.ca. https://www.canada.ca/en/revenue-agency/services/child-family-benefits/acwb-eligibility.html. (3) What Is the Working Income Tax Benefit? | Wealthsimple. https://www.wealthsimple.com/en-ca/learn/working-income-tax-benefit. (4) How to Apply for the Canada Workers Benefit. https://turbotax.intuit.ca/tips/applying-for-the-working-income-tax-benefit-352. (5) What Is the Canada Workers Benefit? (And How to Apply). https://ca.indeed.com/career-advice/career-development/what-is-canada-workers-benefit.