The Canada Workers Benefit (CWB) is a tax credit that was made available for 2019 and subsequent tax years, replacing the WITB (Working Income Tax Benefit) for 2018 and the preceding years. To claim the CWB tax credit, you must meet the eligibility requirements. The benefit also may include a disability supplement, which can only be claimed once your medical practitioner completes form T2201 (Disability Tax Credit Certificate) and sends it to the CRA. Here's a quick overview of everything you need to know about Canada Workers Benefit, including who is eligible, the disability supplement and how to claim CWB.
What is the Canada Workers Benefit?
The CWB is a refundable federal tax credit available for low-income families and individuals. You can claim this tax credit if you are 19 years or older and a resident of Canada for the entire year. You can also claim the tax credit if you are below 19, although there are various conditions you must meet to qualify.
The CWB tax credit has two main components: the basic amount and the disability supplement. Those claiming disability supplements also need to have their medical practitioner complete the T2201 tax slip and send it to the CRA. The maximum amounts you can receive from the CRA depend on where you live, your marital status, and whether or not you have any eligible dependents. An eligible dependent refers to you or your spouse or common-law partner's child who lived with you on December 31, is below 19 years of age, and is not eligible to claim CWB.
For the 2024 tax year, single individuals can claim up to $1,518, which is gradually reduced if you have a net income of more than $24,975. You won't be eligible if your adjusted net income is higher than $35,095 in a tax year. Families can claim up to $2,616, which is gradually reduced for families with an adjusted net income above $28,494. Families with an adjusted net income of more than $45,934 cannot claim the basic amount.
Note: All of the amounts listed above do not apply for residents of Nunavut, Alberta, or Quebec. They each have their own amounts.
Who Is Eligible for CWB?
The Canada Workers Benefit tax credit is only available for low-income earners, so you cannot claim if your net income is above the set thresholds. You must also be a Canadian resident for the entire year and at least 19 years of age to claim workers benefit. If you are below 19, you can still claim the CWB tax credit if you have a spouse, common-law partner, or an eligible dependent. You won't be able to claim Canada Workers Benefit if you are enrolled at a designated educational institution as a full-time student for more than thirteen weeks during the tax year, unless you have an eligible dependant. Other non-eligible persons include:
If you were in prison or similar detention facility for ninety (90) or more days during the tax year
If you are a diplomat, officer or servant of another country, or an employee or family member of such a person, not legally required to pay the annual tax in Canada
You also won't be able to claim the CWB in 2024 if your net income exceeds $35,095 (singles) or $45,934 (families). Again, this doesn’t apply to Nunavut, Alberta, or Quebec. Those who are planning to claim a disability supplement must also have a medical practitioner complete T2201, the Disability Tax Credit given for physical and neurological impairment and mental illness.
What Is the disability supplement?
The disability supplement is a unique tax credit designated for taxpayers that have a valid T2201 Disability Tax Credit Certificate in place. This tax credit is an added benefit meant for low-income workers with a disability or the supporting family member of someone with a disability. Only those with a disability certified by a medical practitioner on Form T2201 will receive the CWB disability supplement. The disabled individual or person claiming for the disabled individual, must also earn a minimum amount in the tax year. For singles, the disability supplement in 2024 is gradually reduced if your adjusted net income exceeds $35,098. Taxpayers earning more than $40,325 cannot claim the disability supplement. For families, gradual reduction begins at if your adjusted net income exceeds $45,932. No disability supplement is paid if one spouse is eligible for the disability tax credit and your adjusted family net income is more than $51,159, or if both spouses are eligible for the disability tax credit and your adjusted family net income is more than $56,386. The CRA provides a calculator and eligibility guidelines to help taxpayers determine if they qualify for these tax benefits and how much they can claim.
How can I claim CWB?
To claim your Canada Workers Benefit and disability supplement, you must fill out Schedule 6 of your annual return. Most tax preparation software will do this for you automatically. Schedule 6 has three main calculations:
Your working income and adjusted family income
Your Basic CWB
Your Disability Supplement
The amount from line 28 or 42 of Schedule 6 is entered on line 45300 of your income tax and benefit return.
CWB advanced payments
If you’re eligible to receive CWB, you’ll get up to 50% in advanced payments. This payment includes your basic advanced payments, as well as 50% of your disability supplement if you’re eligible to receive that as well. If you ever see the acronym “ACWB” this is what it’s referring to. It’s also known as the Advanced Canada Workers Benefit.
To get advanced payments, the information provided needs to reflect your situation and province of residence as of December 31 on your tax return, and you have to be a resident of Canada on the first day of the quarter to be eligible.
If you’re expecting a payment, they are issued 3 times a year:
July 12
October 11
January 10
If those days happen to fall on a weekend or federal holiday, the payment date will move to the last business day before the issuance date. For all payments expected in 2025, this will be the case.
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