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Canadian Workers Benefit (CWB) – Eligibility, Amount And Payment Dates

The Working Income Tax Benefit was revised in 2018, making it more accessible and inviting to more Canadians. It has since been raised to 2022 as a result of an increase in the number of eligible Canadians receiving benefits and available in-work tax credits. In addition, the amount of the benefit can vary depending on age, family situation, occupation, and a variety of other factors.

If you or your family have a low income, you may be eligible for the Canada Workers Benefit. The CWB is a new quarterly payment that helps low-income working families and individuals.

This article discusses the Canada Workers Benefit, including how much you can get, when payments are made, how to apply, and more.

The Canada Workers Benefit: What Is It?

A refundable tax credit known as the Canada Workers Benefit is a credit that supports low-income working families and individuals.

Canadian families and individuals that qualify may earn up to $2,403 and $1,395, respectively.

The CWB Is divided into two components: a baseline amount and a disability portion.

When you submit your annual income tax return during tax season, you can claim the CWB. It has been made available from 2019 to subsequent years.

Important Dates For The Payment Of Canada Workers Benefit In 2022  

The following dates apply to Canada Workers Benefit payments each year:

  • January 5

  • April 5

  • July 5

  • October 5

Log into your CRA account on the website or the MyBenefits CRA mobile app to view your payment details.

Canada Workers Benefit

Eligibility for the Canada Workers Benefit

The following individuals are eligible for the Canada Workers Benefit. To be eligible, you must:

  • Earn a living by working.

  • Be a resident of Canada for the entire calendar year

  • Alternatively, you must reside with your spouse, common-law partner, or kid and be at least 19 years old on December 31.

If any of the following listed below apply to you, your spouse, or your common-law partner:

  • Attend a designated educational institution full-time for more than 13 weeks of the year (unless you have an eligible defendant on December 31).

  • Have spent at least 90 days in jail or prison in that year.

  • Are you ineligible to pay taxes in Canada (because you are an officer or a servant of another country, or a family member of that person)?

A dependent who qualifies is:

  • Someone ineligible for CWB

  • The child of your spouse or your child or partner

  • Under 19 and residing with you as of December 31

A spouse who qualifies is:

  • All year long, a resident of Canada

  • Someone, as of December 31, is your husband or common-law partner.

Suppose you have an authorized Form T2201, Disability Tax Credit Certificate, on record with the CRA and are qualified for the disability tax credit. In that case, you can be eligible for the disability element of the CWB.

Required Employment Income for CWB

To qualify for the Canada worker’s benefit, an individual must have a minimum employment income of $3,000 in the majority of the provinces.

 However, the requirements in Quebec and Alberta are lower, at $2,400 and $2,760, respectively. The highest is $6,000 for Nunavut.

All provinces have substantially lower minimum income requirements to qualify for disability credit. The average provincial minimum income is $1,150.

However, in Albert, Quebec, and Nunavut, they are $910, $1,200, and $4,800, respectively.

Provinces/Territories

Basic Amount Minimum Income

Disability Supplement Minimum Income

Alberta

$2760

$910

Nunavut

$6000

$4800

Quebec

$2400

$1200

Others

$3000

$1150

The CWB basic amount for an individual begins to decrease at an adjusted net income of over $22,944 and is fully clawed back at $32,244.

CWB Beginning at $26,177, basic payments to families is steadily lowered until none are made when the adjusted family net income exceeds $42,197.

Note: The clawback rate varies for citizens of Quebec.

How Is The Canada Workers Benefit calculated?

Your province or territory of residency and your yearly income determine how much you are eligible to receive from the CWB.

For single people, the maximum basic amount is $1,395, and for families, the maximum basic amount is $2,403. Depending on your salary, this amount eventually decreases.

The Canada Revenue Agency uses the following details to calculate how much you will receive:

  • Your marital status and if you have a partner who qualifies

  • Your home province or territory and annual income from employment

  • The net adjusted income for your family

  • Your qualifying dependents

  • Your qualification for the tax credit for disabilities

Calculate your expected benefit amount with the Canada Workers Benefit Calculator. Alternatively, utilize a calculating sheet tailored to your home province or territory.

The amount you anticipate receiving depending on the Canada Workers Benefit income thresholds is described in more detail below.

How Much Is The Canada Workers Benefit In 2022?

The amount of the Canadian Workers Benefit you might anticipate varies depending on your salary and the province or territory you reside in.

For single individuals

  • The maximum basic amount for single people is $1,395, which steadily decreases if your adjusted net income exceeds $22,944.

  • You will not receive the basic amount if you make more than $32,244.

  • The $720 maximum disability supplement steadily decreases if your adjusted net income is more than $32,244.

  • You will not be eligible for the disability supplement if your income exceeds $37,044.

For households

  • The maximum basic amount is $2,403; if your family’s adjusted net income is higher than $26,177, it steadily decreases.

  • You will not receive the basic amount if your family makes more than $42,197 annually.

  • The maximum disability benefit is $720; if your adjusted family net income is more than $42,197, it steadily decreases.

  • You will not receive the disability supplement if one spouse is qualified for the disability tax credit and the net family income is higher than $46,997 or if both spouses are qualified for the disability tax credit. The net family income is higher than $51,797.

  • The maximum basic payment and maximum disability supplement amounts will differ for people who reside in Quebec.

Canadian Workers Benefit (CWB) For Canadians with Disabilities 

Before applying for the Canada Workers Benefit, keep in mind that the following may qualify you for an extra disability supplement of up to $713 annually:

How To Claim The Canada Workers Benefit (CWB)?

Since the Canada Workers Benefit is a tax credit, you can apply for the credit when you electronically file your annual income tax returns.

You can apply for the tax credit and receive instructions from any of the tax preparation software that the CRA has approved.

A Schedule 6 Canada workers benefit can be used by those who submit their returns on paper. Fill out completely; the form, then send it with your tax returns.

Only one of you may claim the basic amount if you are a couple or have a companion. The spouse who is qualified for the disability tax credit must submit a claim for both the basic and disability supplements if you are eligible for the disability supplement.

If both of you obtain the disability tax credit, but only one of you claims the basic amount, then both of you must claim the disability supplement.

In conclusion, there are two ways to apply for Canadian worker’s benefits:

  • Utilizing tax software electronically

  • Completing Schedule 6 and using paper returns will benefit Canadian workers.

Benefit Increase for Canadian Workers 2022

The Canada Workers Benefit is inflation-indexed, like many other tax credits and benefits offered by the Canadian government.

The CWB rates for 2022 were slightly raised to reflect the indexation. In most provinces, individuals can now get up to $1,395 — an increase of $14 from the $1,381, tax year 2021 limit.

Additionally, the family exemption amounts increased by $24 from $2,379 in 2021 to $2,403 in 2022.

Application Procedure for the Canada Workers Benefit

Follow the directions on your tax software to claim the CWB if you are filing your taxes online. Schedule 6, Canada Workers Benefit, should be completed and submitted if you are filing a paper return.

There are two ways for you to submit a claim for the disability supplement:

  • If only one of you qualifies for the disability tax credit and you have a qualifying spouse or common-law partner, the individual who qualifies should claim both the disability supplement and the basic amount.

  • If you have a common-law or spouse partner who qualifies and you both qualify for the disability tax credit. One person may, however, claim the base sum.

You can apply for advance payments if you meet the requirements and receive up to 50% of your Canada Workers Benefit installments before the scheduled dates. You may either:

  • Log into your CRA account on the website, finish filling out your application, and submit it.

  • Or ensure that form RC201 is completed and mailed to the Sudbury Tax Centre (and must be submitted on or before August 31).

A few things to note:

  • When calculating your anticipated revenue for the year, try to be as precise as you can.

  • In the event that your expected CWB tax credit is less than $200, you won’t be given an advance payment. In other words, a $100 advance payment, or $25 per quarter, is the minimum that can be made for the entire year.

  • When you submit your tax returns, you will receive credit for the remaining amount of your CWB claim. Also, the actual CWB tax credit is less than the advance payment you have received.

  • You must give back the additional money if the advance payment you get exceeds your final CWB credit.

Clawbacks Of The Canada Workers Benefit

Once your adjusted net income reaches a certain level, the CWB amounts are gradually decreased or clawed back by 12%.

These minimums change depending on your marital status, whether you’re single or not, and whether you qualify for the CWB disability supplement.

The table below shows the appropriate net income for 2022. And also how the CWB begins to reduce for families:

Provinces/Territories

Claw Back Initial Price

Max Income To Receive CWB

Alberta

$18,291

$36,758

Nunavut

$29,559

$49,926

Quebec- no children

$18,897.50

$36,997.95

Quebec – with children

$18,905.35

$28,153.75

Other provinces

$17,348

$37,173

The federal government has proposed alterations to the Canada Workers Benefit (CWB) as part of its new Affordability Plan, which may affect up to three million Canadians.

It’s part of a larger strategy to reduce inflation and make life more affordable in Canada after the long-lasting effects of the global COVID-19 pandemic and Russia’s invasion of Ukraine.

About Working Income Tax Benefit (WITB)

A federal refundable tax credit for low-income earners was known as the Working Income Tax Benefit (WITB). The credit was offered from 2007 to 2017 before Canada Workers Benefit took its place in 2019 (CWB).

Many of the requirements for eligibility were carried over to the new CWB program. For instance, all provinces except Alberta, Quebec, and Nunavut require persons to have a minimum annual income of $3,000.

However, CWB made a number of improvements, which resulted in a more simplified and paperless application procedure.

In comparison to WITB, eligible Canadians might obtain additional benefits under CWB.

Also altered was the clawback rate. When your net family income reaches the income cutoff in most provinces, the Working Income Tax Benefit credit is taken back by 15%.

For the majority of provinces, the rate is now 12% under CWB, allowing you to keep more.

Working Income Tax Benefit (WITB) vs. Canada Workers Benefit (CWB)

In place of the Working Income Tax Benefit (WITB), the Canada Worker’s Benefit (CWB) was created in 2019. (WITB). From 2007 to 2018, the WITB was accessible to individuals and families making above $3,000 per year.

The CWB Is an upgraded and reorganized version of the WITB that now determines your eligibility for the CWB automatically, even if you don’t claim it.

The maximum amount for the Canada Workers Benefit is higher, at $1,395 as opposed to $1,059 for individuals and $2,403 as opposed to $1,922 for families.

The Working Income Tax Benefit has been replaced with the Canada Workers Benefit (WITB). Available from 2007 to 2018, it was for families with a working income of over $3,000.

Since 2007, the WITB has changed dramatically, and the 2018 Canadian federal budget was reorganized. The CWB currently offers more benefits and has stricter eligibility requirements.

Additionally, the CWB has a higher income cutoff point before you stop being eligible. Instead of $19,076, an individual can now earn up to $32,244 and a family can now earn up to $42,197 instead of $28,975.

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Canada Workers Benefit FAQs

What is the advance payment for Canada Worker’s Benefit?

If qualified, you may be able to acquire up to 50% of your CWB installments in advance. Apply for advance payments for the Canada Workers Benefit by logging into your account on the CRA website, or complete Form RC201 and return it to the Sudbury Tax Centre.

Who may make a CWB claim?

You must have a working income, reside in Canada, be 19 years of age or older on December 31, OR live with your spouse, common-law partner, or child to be eligible for the CWB. Individuals must also make between $3,000 and $32,244, and families must make between $3,000 and $42,197 to qualify.

What does the CWB consider low income?

Low income is defined as individuals earning $3,000 to $32,244 and families earning $3,000 to $42,197.

What is the CWB phone number?

Call 1-800-959-8281 to obtain tax information for people, including the CWB.

What is the amount of the Canada Workers Benefit?

Your income affects the Canada Workers Benefit Payment. Families may receive up to $2,403, and individuals may receive up to $1,395 as a basic amount. Families and individuals receiving the disability supplement are both limited to $720.

When will CWB be paid in 2022?

April 5, July, October, and January are when the CWB is paid.

Is CWB the same as WITB?

In 2019, we saw the introduction of CWB as WITB’s replacement. Even though the requirements for qualifying are similar, the CWB has several improvements, and qualified applicants can get a bigger tax credit than they did with WITB.

Final Words

You could actually be missing out on some much-needed extra income by not demanding your benefit funds when tax season finally rolls around.

The benefit would be improved in 2022 with extra assistance for low-income individuals and families who are employed, the Department of Finance announced on June 16.

With the increase, eligible workers will be able to get up to $1,200 more this year alone, and an eligible couple will receive an additional $2,400 together.

The federal government estimates that three million Canadians may be able to get extra support due to the changes. In 2022, it’s anticipated that the improvement will cost $1.7 billion.

Find out exactly how you need to apply for the Canada Workers Benefit and maximize your 2022 tax return by contacting the Canada Revenue Agency or visiting their website.

Thanks for reading! Please let me know your thoughts and comments below. 

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