Unpacking the Canada Worker Benefit: Your Complete Guide
- Joshua McKillop
- Feb 7
- 3 min read
What is the Canada Worker Benefit?
The Canada Worker Benefit (CWB) is a government program that provides extra money to low-income workers to help them earn more and afford daily expenses. It is a tax credit, which means it reduces the amount of taxes you owe or gives you a refund.
The CWB has two parts:
Basic Amount – This is money given to workers who earn a low income. As their income increases, the amount slowly decreases.
Disability Supplement – Extra money for people with disabilities who qualify for the Disability Tax Credit.
To receive the CWB, you must be at least 19 years old (or have a spouse, partner, or child) and earn money from a job or self-employment. The amount you receive depends on your income, if you are married, and if you have children.
There is also an Advance Payments program, which allows you to receive half of their benefit early in four smaller payments throughout the year. This helps cover costs instead of waiting until tax season. However, these payments are only an estimate based on your expected income for the year. At tax time, the correct amount will be calculated and compared to what you received during the year, and an adjustment will be made to correct the difference.
How much can I receive?
The amount you can receive depends on your income, family situation, and disability status. Below are the amounts for 2024.
For Single Individuals:
Maximum Basic Amount: Up to $1,428 per year.
This amount decreases if your adjusted net income exceeds $23,495.
No basic amount is provided if your income surpasses $33,015.
Disability Supplement: An additional $737 is available for those eligible for the Disability Tax Credit.
This supplement reduces if your income is above $33,018.
No supplement is provided if your income exceeds $37,932.
For Families:
Maximum Basic Amount: Up to $2,461.
This amount decreases if your adjusted family net income exceeds $26,805.
No basic amount is provided if your family income surpasses $43,212.
Disability Supplement: An additional $737 is available for each family member eligible for the Disability Tax Credit.
The supplement reduces if your family income is above $43,210.
No supplement is provided if your family income exceeds $51,159 for one eligible spouse, or $56,386 if both spouses are eligible.
These amounts are based on information available as of 2024. For the most current figures and detailed information, please refer to the official Canada Revenue Agency website.
How do I apply?
You do not need to apply separately for the Canada Workers Benefit (CWB). Instead, you can claim it when you file your income tax return. Here’s how:
Steps to Apply for the CWB
File Your Taxes – Even if you don’t owe taxes, you must file your tax return to receive the CWB.
Complete Schedule 6 – On your tax return, fill out Schedule 6 – Canada Workers Benefit to determine your eligibility and amount.
Claim the Disability Supplement (if applicable) – If you qualify for the Disability Tax Credit (DTC), make sure you have an approved Form T2201 on file with the CRA.
Submit Your Return – You can file online using NETFILE, through a tax professional, or by mailing a paper return to the CRA.
Advance Payments Option
If you want to receive up to 50% of your CWB in advance through quarterly payments, apply for the CWB Advance Payments by:
Completing Form RC201
Submitting it through CRA My Account or by mail
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