Bottom Line Up Front: The Canada Workers Benefit provides up to $1,590 for single individuals and $2,739 for families in 2024, plus an additional $821 disability supplement for those who qualify. If you’re a low-income worker, this refundable tax credit could put significant money back in your pocket.
What is the Canada Workers Benefit?
The Canada Workers Benefit (CWB) is a refundable federal tax credit designed to provide financial relief to low-income workers and their families. The CWB has two parts: a basic amount and a disability supplement, making it a valuable tool for helping working Canadians cope with rising living costs.
Unlike non-refundable tax credits, the CWB is refundable, meaning you can receive money back even if you don’t owe any taxes. The benefit also includes the Advanced Canada Workers Benefit (ACWB), which provides up to 50% of your annual entitlement in advance payments throughout the year.
Who Can Claim the CWB in 2024?
Basic Eligibility Requirements
To qualify for the CWB in 2024, you must meet all of these conditions:
Age and Residency:
- Be 19 years of age or older on December 31, or live with your spouse or common-law partner or your child
- Be a Canadian resident for the entire tax year
- Have earned working income and your net income must be below the thresholds for your province
Income Thresholds:
- Singles: Net income must be below $36,749 (phase-out begins at $26,149)
- Families: Net income must be below $48,093 (phase-out begins at $29,833)
Who Cannot Claim the CWB
You are not eligible for the CWB if 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 dependent on December 31)
- Are confined to a prison or similar institution for a period of at least 90 days during the year
- Are a diplomat or family member of a diplomatic officer who doesn’t pay Canadian taxes
- Have a net income above the maximum thresholds
How Much Can You Receive in 2024?
Basic CWB Amounts
For Single Individuals:
- Maximum of $1,590 for single individuals
- Amount is gradually reduced if your adjusted net income is more than $26,149
- No basic amount is paid if your adjusted net income is more than $36,749
For Families:
- Maximum of $2,739 for families
- Amount is gradually reduced if your adjusted family net income is more than $29,833
- No basic amount is paid if your adjusted family net income is more than $48,093
Disability Supplement
If you qualify for the Disability Tax Credit, you may be eligible for an additional supplement:
- Maximum of $821 for both single individuals and families
- Singles: Gradually reduced if net income exceeds $36,748; no supplement if income exceeds $42,222
- Families: More complex calculation based on whether one or both spouses qualify for the disability tax credit
Note: The maximum basic CWB amount will vary for residents of Quebec, Nunavut and Alberta
Understanding Your Eligible Dependents
Eligible Spouse
For CWB purposes, an eligible spouse is someone who lives with you as your spouse or common-law partner on December 31 and meets the same basic eligibility requirements (not a full-time student for more than 13 weeks, not incarcerated, etc.).
Eligible Dependent
An eligible dependent must be:
- Your child or your spouse’s child
- Under 19 years of age
- Living with you on December 31
- Not eligible to claim the CWB themselves
Advanced Canada Workers Benefit (ACWB) Payments
One of the most valuable features of the CWB is that you will get up to 50% of your CWB in advanced payments under what is referred to as the Advanced Canada workers benefit (ACWB).
Payment Schedule
The advanced payments are issued in 3 payments, on: July 12, October 12, January 12
How It Works
- If you received the CWB in your previous tax return, you’ll automatically receive advance payments
- No application required for advance payments
- The remaining 50% is paid after you file your current year’s tax return
- You must file your tax return by November 1 to receive the full benefit
How to Claim the CWB
Filing Your Tax Return
- Complete Schedule 6: Fill out the Canada Workers Benefit form when filing your tax return
- Use certified tax software: Most tax software will automatically calculate your CWB if you’re eligible
- File by the deadline: Ensure your return is filed to continue receiving advance payments
Claiming the Disability Supplement
To claim the disability supplement:
- You must be eligible for the Disability Tax Credit
- Have an approved Form T2201 on file with the CRA
- Include both the basic CWB and disability supplement on your return
Key Tips for Maximizing Your CWB
File Early: Submit your tax return as soon as possible to ensure you receive advance payments for the following year.
Keep Records: Maintain documentation of your working income and any changes in your family situation.
Update Your Information: Notify the CRA of major life changes, though most changes won’t affect your advance payments unless you request a reassessment.
Check Your My Account: Monitor your CRA My Account online to track payment dates and amounts.
Provincial Variations
While the CWB is a federal benefit, the amounts can vary for residents of:
- Quebec: Different calculation methods apply
- Nunavut: Adjusted amounts to reflect higher cost of living
- Alberta: Specific provincial variations
Common Questions
Q: What counts as “working income”? A: Working income includes employment income, net self-employment income, and certain other types of earned income.
Q: Can students claim the CWB? A: Generally no, unless you have an eligible dependent or are enrolled for 13 weeks or less.
Q: What if I’m married but only one spouse works? A: The family income threshold applies, and only one spouse will receive the advance payments.
The Bottom Line
The Canada Workers Benefit is a substantial tax credit that can provide meaningful financial relief to low-income workers. With maximum amounts of $1,590 for individuals and $2,739 for families, plus potential disability supplements, the CWB represents a significant opportunity to reduce your tax burden and increase your take-home income.
The automatic advance payment system means you don’t have to wait until tax season to see the benefits – you’ll receive half your entitlement throughout the year in quarterly payments. Make sure to file your tax return on time and keep your information current with the CRA to maximize this valuable benefit.
Remember: The CWB is designed to help working Canadians, so if you’re earning a modest income and supporting yourself or your family, you likely qualify for this important tax relief.
Canada Workers Benefit (CWB) 2024: Your Complete Guide to Tax Relief for Low-Income Workers
Bottom Line Up Front: The Canada Workers Benefit provides up to $1,590 for single individuals and $2,739 for families in 2024, plus an additional $821 disability supplement for those who qualify. If you’re a low-income worker, this refundable tax credit could put significant money back in your pocket.
What is the Canada Workers Benefit?
The Canada Workers Benefit (CWB) is a refundable federal tax credit designed to provide financial relief to low-income workers and their families. The CWB has two parts: a basic amount and a disability supplement, making it a valuable tool for helping working Canadians cope with rising living costs.
Unlike non-refundable tax credits, the CWB is refundable, meaning you can receive money back even if you don’t owe any taxes. The benefit also includes the Advanced Canada Workers Benefit (ACWB), which provides up to 50% of your annual entitlement in advance payments throughout the year.
Who Can Claim the CWB in 2024?
Basic Eligibility Requirements
To qualify for the CWB in 2024, you must meet all of these conditions:
Age and Residency:
- Be 19 years of age or older on December 31, or live with your spouse or common-law partner or your child
- Be a Canadian resident for the entire tax year
- Have earned working income and your net income must be below the thresholds for your province
Income Thresholds:
- Singles: Net income must be below $36,749 (phase-out begins at $26,149)
- Families: Net income must be below $48,093 (phase-out begins at $29,833)
Who Cannot Claim the CWB
You are not eligible for the CWB if 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 dependent on December 31)
- Are confined to a prison or similar institution for a period of at least 90 days during the year
- Are a diplomat or family member of a diplomatic officer who doesn’t pay Canadian taxes
- Have a net income above the maximum thresholds
How Much Can You Receive in 2024?
Basic CWB Amounts
For Single Individuals:
- Maximum of $1,590 for single individuals
- Amount is gradually reduced if your adjusted net income is more than $26,149
- No basic amount is paid if your adjusted net income is more than $36,749
For Families:
- Maximum of $2,739 for families
- Amount is gradually reduced if your adjusted family net income is more than $29,833
- No basic amount is paid if your adjusted family net income is more than $48,093
Disability Supplement
If you qualify for the Disability Tax Credit, you may be eligible for an additional supplement:
- Maximum of $821 for both single individuals and families
- Singles: Gradually reduced if net income exceeds $36,748; no supplement if income exceeds $42,222
- Families: More complex calculation based on whether one or both spouses qualify for the disability tax credit
Note: The maximum basic CWB amount will vary for residents of Quebec, Nunavut and Alberta
Understanding Your Eligible Dependents
Eligible Spouse
For CWB purposes, an eligible spouse is someone who lives with you as your spouse or common-law partner on December 31 and meets the same basic eligibility requirements (not a full-time student for more than 13 weeks, not incarcerated, etc.).
Eligible Dependent
An eligible dependent must be:
- Your child or your spouse’s child
- Under 19 years of age
- Living with you on December 31
- Not eligible to claim the CWB themselves
Advanced Canada Workers Benefit (ACWB) Payments
One of the most valuable features of the CWB is that you will get up to 50% of your CWB in advanced payments under what is referred to as the Advanced Canada workers benefit (ACWB).
Payment Schedule
The advanced payments are issued in 3 payments, on: July 12, October 12, January 12
How It Works
- If you received the CWB in your previous tax return, you’ll automatically receive advance payments
- No application required for advance payments
- The remaining 50% is paid after you file your current year’s tax return
- You must file your tax return by November 1 to receive the full benefit
How to Claim the CWB
Filing Your Tax Return
- Complete Schedule 6: Fill out the Canada Workers Benefit form when filing your tax return
- Use certified tax software: Most tax software will automatically calculate your CWB if you’re eligible
- File by the deadline: Ensure your return is filed to continue receiving advance payments
Claiming the Disability Supplement
To claim the disability supplement:
- You must be eligible for the Disability Tax Credit
- Have an approved Form T2201 on file with the CRA
- Include both the basic CWB and disability supplement on your return
Key Tips for Maximizing Your CWB
File Early: Submit your tax return as soon as possible to ensure you receive advance payments for the following year.
Keep Records: Maintain documentation of your working income and any changes in your family situation.
Update Your Information: Notify the CRA of major life changes, though most changes won’t affect your advance payments unless you request a reassessment.
Check Your My Account: Monitor your CRA My Account online to track payment dates and amounts.
Provincial Variations
While the CWB is a federal benefit, the amounts can vary for residents of:
- Quebec: Different calculation methods apply
- Nunavut: Adjusted amounts to reflect higher cost of living
- Alberta: Specific provincial variations
Common Questions
Q: What counts as “working income”? A: Working income includes employment income, net self-employment income, and certain other types of earned income.
Q: Can students claim the CWB? A: Generally no, unless you have an eligible dependent or are enrolled for 13 weeks or less.
Q: What if I’m married but only one spouse works? A: The family income threshold applies, and only one spouse will receive the advance payments.
The Bottom Line
The Canada Workers Benefit is a substantial tax credit that can provide meaningful financial relief to low-income workers. With maximum amounts of $1,590 for individuals and $2,739 for families, plus potential disability supplements, the CWB represents a significant opportunity to reduce your tax burden and increase your take-home income.
The automatic advance payment system means you don’t have to wait until tax season to see the benefits – you’ll receive half your entitlement throughout the year in quarterly payments. Make sure to file your tax return on time and keep your information current with the CRA to maximize this valuable benefit.
Remember: The CWB is designed to help working Canadians, so if you’re earning a modest income and supporting yourself or your family, you likely qualify for this important tax relief.