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With tax season coming up, it’s time to think about the credits or deductions that you may be able to claim. For instance, the Canada Workers Benefit (CWB) was implemented in 2019 to replace the Working Income Tax Benefit (WITB). Due to COVID-19, this new benefit has recently become important for many Canadians.
Did you receive the Canada Workers Benefit last year? Are you interested in learning what the CWB is and how you can claim it on your income taxes? Keep reading, we have the answers you need.
As mentioned, the Canada Workers Benefit was introduced by the federal government in 2019 as a replacement for the Working Income Tax Benefit, which used to provide over $1 billion in tax benefits to millions of Canadians every year.
Today, the CWB is a refundable tax credit for individuals earning a low taxable income of $3,000 – $24,112. Families earning a household income of $36,482 or under can also qualify. If eligible, you should receive 26% of every dollar you make over the $3,000 threshold, to a maximum of $1,355 as an individual or $2,335 as a family.
Check out how the wage earner protection program can help you.
The Canada Workers Benefit can be collected in two parts:
You can arrange for your CWB to be paid in a lump sum every year via direct deposit. Or, half your benefit can be separated into 4 annual payments and the remaining amount will be delivered as a lump sum after your income taxes are processed.
Unfortunately, only certain Canadians are eligible for the Canada Workers Benefit. Here are some of the criteria you need to qualify:
If you have a spouse or common-law partner, they are eligible for the CWB when they:
If you have dependents, they are eligible for the CWB when they are:
However, you are not eligible for the Canada Workers Benefit if you:
Do you have a child? Check out if you qualify for the Canada Child Benefit.
Even if you’re technically eligible for Canada Workers Benefit, there are factors that can prevent you from qualifying for the full amount. The Canada Revenue Agency typically calculates your CWB Tax Credit based on your:
Another important thing to understand about the Canada Workers Benefit is that there are certain factors that can cause your eligible amount to increase and decrease, such as your marital status, net income, and home province/territory:
Single Taxpayers in Most Provinces:
Families in Most Provinces:
Single Taxpayers in Alberta:
Families in Alberta:
Single Taxpayers in Nunavut:
Families in Nunavut:
The maximum basic amount you can receive from the Canada Workers Benefit is:
Keep in mind that these maximum CWB mounts may be slightly different if your home province/territory is Quebec, Alberta or Nunavut.
Before you apply for the Canada Workers Benefit, don’t forget that you may be eligible for an additional disability supplement of up to $713 per year, if you:
Need help filling out your form? Try using a disability tax credit consultant.
Similar to the Canada Workers Benefit, your additional disability supplement amount can vary according to your marital status, income and home province/territory, as well as the number of disabled people in your family:
Single Disabled Individuals (Most Provinces):
Families With 1 Working Disabled Person (Most Provinces):
Couples With 2 Disabled Partners (Most Provinces):
Single Disabled Individuals (Alberta):
Families With 1 Working Disabled Person (Alberta):
Couples With 2 Disabled Partners (Alberta):
Single Disabled Individuals (Nunavut):
Families With 1 Working Disabled Person (Nunavut)
Couples With 2 Disabled Partners (Nunavut):
Are you a senior? Check out these tax credits and benefits for seniors.
Applying for and claiming your CWB is relatively simple. All you have to do is visit the Canada Revenue Agency website and complete the following steps:
If you prefer, you can also make a request for the Canada Revenue Agency to assess your eligibility for the CWB automatically.
Do you have a disability and live in Ontario? Then you should consider applying for the Ontario Disability Support Program (ODSP).
Remember, the Canada Workers Benefit is sometimes paid on a quarterly basis (4 times per year). Typically, you’ll receive your payments on the fifth day of the month, the payment dates are:
However, you can also receive up to half of your CWB amount through advance payments, which you can apply for using either of these methods:
Sudbury Tax Centre
PO Box 20000
Sudbury ON P3A 5C1
It’s important to know that if you want to qualify for these CWB advance payments, the CRA must receive your completed Form RC201 by August 31 of that year. If not, the form won’t be processed. Additionally, if you want to keep receiving advance payments, you’ll have to re-apply every year.
If you don’t get your regular or advance CWB payment by the specified date, wait 10 business days, then contact the Canada Revenue Agency to resolve the situation.
Check out the payment dates for the AISH program.
In 2019, the Canadian government replaced the WITB with the CWB and introduced the following key changes to the tax credit program:
Don’t have a large income? Check out these tax tips for low-income earners.
Before you apply for the CWB, don’t forget to check the specified income limits:
Once again, these maximum income thresholds vary depending on your home province/territory (Alberta, Nunavut and Quebec are slightly different).
You could be missing out on some much-needed extra income by not claiming your benefit by the time tax season arrives. Contact the Canada Revenue Agency or visit their website to find out exactly what you need to apply for the Canada Workers Benefit and make the most out of your 2020 income tax return.
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