Canada Workers Benefit: Overview, Eligibility & How to Apply

The Canada Workers Benefit (CWB) is a refundable tax credit to help low-income individuals and families working in Canada. The Canada Workers Benefit has a basic amount and a disability supplement.

Eligible individuals and families can claim the Canada Workers Benefit when they file their income tax return and get up to half of the CWB in advance payments instead of waiting for tax time.

Canada Workers Benefit Eligibility

If you are 19 years of age or older; you must:

Have employment income.
Be 19 years or older.
Be a Canadian resident for income tax purposes.

If you have a spouse or common-law partner, they must meet the following requirements to qualify for the CWB:

Reside together with you on December 31.
Meet all the requirements for CWB eligibility.

Furthermore, if you are under 19 years of age, you may still be eligible for the Canada Workers Benefit if you have a spouse or common-law partner or an eligible dependant on December 31st;

An eligible dependant is a person who is:

your spouse or common-law partner’s child,
under 19 years of age and lived with you at the end of the year, and
is not eligible for the CWB for the year it is being claimed.

Who is Not Eligible for the Canada Workers Benefit?

You may not be eligible for the Canada Workers Benefit if:

You’re a full-time student in any designated school for more than 13 weeks. An exception applies when you have a qualified dependent on December 31.
Canada is not your country/residence, and you’re not required to pay tax in Canada.
You’re imprisoned within the year for at least 90 days.
You are a diplomat of another country in Canada who doesn’t pay taxes in Canada.

How Much Canada Workers Benefit Amount Can You Receive?

How much you get on Canada Workers Benefit (CWB) lies in your employment income and province/territory.

The maximum basic amount is:

$1,395 for individuals
The amount starts to reduce when your annual income reaches $22,944. No basic amount is paid when your adjusted annual income exceeds $32,244.
$2,403 for families
The amount starts to reduce when your adjusted annual family income reaches $26,177. No basic amount is paid if your adjusted annual family net income exceeds $42,197.

The maximum basic Canada Workers Benefit amount will vary for residents of Quebec.

The maximum amount for the disability supplement is:

$720 for individuals
The Canada Workers Benefit disability supplement begins to reduce when your annual net income is more than $32,244. No disability supplement is paid when your annual net income is more than $37,044.
$720 for families
The Canada Workers Benefit disability supplement begins to reduce when your annual family net income is more than $42,197. No disability supplement is paid if one spouse is eligible for the disability tax credit and your annual family net income is more than $46,997 or if both spouses are eligible for the disability tax credit. Your annual family net income is more than $51,797.

How to Apply for CWB Advance Payments

The CWB advance payment is not automatic. You must apply for it each year to get the advance payment.

There are two options for applying for the CWB advance payment. These are:

First Option

Visit your CRA My Account.
Navigate to “Canada workers benefit advance payments application.”
Provide the required information and submit your application.

Second Option

Complete Form RC201, Canada Workers Benefit Payments Application, and mail it to Sudbury Tax Centre, PO Box 20000, STN A, Sudbury ON P3A 5C1.

Note

: You must complete Form RC201 on or before August 31 for it to be processed.

Furthermore, you don’t need to complete two forms if you and your spouse/common-law partners are qualified for the CWB and want to receive an advance payment.

You only need to submit one application.

Canada Workers Benefit Advance Payments

As mentioned earlier, you can receive one lump-sum CWB payment after your tax is completed or request for advance payment.

With CWB advance payment, you can receive up to half of your total amount four times a year.

January
April
July
October

You should contact the CRA if you don’t receive your advanced payment 10 working days after the expected date.

You can find more information about your CWB payment on your CRA My Account or the CRA MyBenefits mobile app.

Final Thoughts

The Canada Workers Benefit could be the little boost you need to transform your financial situation. It may not be much, but those few hundred or thousands of dollars could add up to building your financial security.

The best way to do that is to save it in a high-yield saving account like EQ Bank Savings Plus Account or tax-efficient retirement accounts like TFSA or RRSP.

Whatever option you choose, ensure you spend your CWB on things that matter.

Author Profile

Adeola Adegoke

Co-founder/CEO at The SEO Hive Digital Solutions | Website

Hi, I'm Adeola Adegoke. I am a licensed Insurance Broker in Manitoba, and I hold a master’s degree in Mathematical Sciences (with a major in Financial Modeling) from the African Institute for Mathematical Sciences (AIMS), Tanzania.

Also, I have a second master's degree in Statistics from the University of Regina, and I am currently pursuing my Ph.D. in Statistics at the University of Manitoba.

The primary purpose of Money Reverie is to help everyday Canadians make better financial decisions by providing up-to-date financial news and information, reports, product reviews, and government programs.