Introduction
The Canada Workers Benefit (CWB) is a refundable tax credit designed to support low-income individuals and families who are actively employed. In 2025, eligible single workers can receive up to $1,518, while families may qualify for up to $2,616.
Additionally, a disability supplement of up to $784 is available for those who qualify. Understanding the eligibility criteria, payment schedules, and application process is crucial to maximizing this benefit.
What Is the Canada Workers Benefit?
The CWB aims to supplement the earnings of low-income workers, ensuring they have additional financial support. This benefit is especially beneficial for individuals and families striving to make ends meet while maintaining employment.
Eligibility Criteria for the CWB in 2025
To qualify for the CWB in 2025, applicants must meet the following conditions:
- Age and Residency: Be at least 19 years old on December 31, 2024, and a resident of Canada throughout the year.
- Working Income: Have a working income over $3,000.
- Income Thresholds: Adjusted net income must be below specific thresholds:
- Single individuals: Up to $35,095.
- Families: Up to $45,935.
- Exclusions: Individuals are not eligible if they:
- Are full-time students for more than 13 weeks in the year (unless they have an eligible dependant).
- Are confined to a prison or similar institution for at least 90 days during the year.
- Do not have to pay tax in Canada because they are an officer or servant of another country, such as a diplomat, or a family member or employee of such a person.
CWB Payment Amounts for 2025
The amount of CWB received depends on various factors, including income level, marital status, and eligibility for the disability supplement.
| Category | Maximum Annual Amount | Income Phase-Out Range |
|---|---|---|
| Single Individual | $1,518 | $24,975 – $35,095 |
| Family (Couples or Single Parents) | $2,616 | $28,494 – $45,934 |
| Disability Supplement (Single) | $784 | $35,098 – $40,325 |
| Disability Supplement (Family) | $784 | $45,934 – $51,275 |
Note: Amounts are gradually reduced within the phase-out ranges.
Advance Canada Workers Benefit (ACWB) Payments
Eligible individuals can receive up to 50% of their CWB through advance payments, known as the ACWB. These payments are issued in three installments throughout the year:
- January 10, 2025
- July 11, 2025
- October 10, 2025
To receive these advance payments, you must file your income tax and benefit return before November 1 of the benefit period. The Canada Revenue Agency (CRA) will automatically determine your eligibility based on your tax return.
How to Apply for the CWB
Applying for the CWB involves the following steps:
- File Your Tax Return: Ensure you file your income tax return by April 30, 2025.
- Complete Schedule 6: This form calculates your CWB and, if applicable, the disability supplement. Most tax software will automatically complete this form for you.
- Enter the Amount: Transfer the calculated amount from Schedule 6 to line 45300 of your income tax return.
- Submit Your Return: File your return electronically or by mail, including Schedule 6 if filing by paper.
Note: To receive advance payments, ensure your return is filed before November 1, 2025.
How to Check Your CWB Status
To verify your CWB eligibility and payment status:
- CRA My Account: Log in to your CRA My Account to view your benefit details, including payment dates and amounts.
- Contact CRA: If you have questions or need assistance, contact the CRA directly.
Frequently Asked Questions (FAQs)
1. Can I receive the CWB if I’m self-employed?
Yes, self-employed individuals with a working income over $3,000 may qualify for the CWB, provided they meet all other eligibility criteria.
2. Do I need to apply separately for the ACWB?
No, if you file your income tax return before November 1, 2025, and qualify for the CWB, the CRA will automatically issue advance payments.
3. What if my income changes during the year?
The CWB is based on your income as reported in your tax return. Significant income changes may affect your eligibility or the amount received in the following year.
4. How do I apply for the disability supplement?
To receive the disability supplement, you must be eligible for the Disability Tax Credit and have an approved Form T2201 on file with the CRA.
5. What happens if I miss the tax filing deadline?
Missing the April 30 deadline may delay your CWB payments. To receive advance payments, ensure your return is filed before November 1, 2025.
Conclusion
The Canada Workers Benefit provides essential financial support to low-income workers across Canada. By understanding the eligibility requirements, payment schedules, and application process, you can ensure you receive the maximum benefit available to you.
Stay proactive by filing your taxes on time and keeping your information up to date with the CRA to maintain uninterrupted access to this valuable support.