The Canada Workers Benefit (CWB) is a federal refundable tax credit designed to support low-income individuals and families who are actively engaged in the workforce. For the 2025 tax year, eligible single individuals can receive up to $1,428, while families may qualify for up to $2,461.
Additionally, a disability supplement of up to $737 is available for those who meet specific criteria. This comprehensive guide will help you understand the CWB, determine your eligibility, and learn how to claim the maximum benefit.
What is the Canada Workers Benefit (CWB)?
The CWB aims to provide financial assistance to low-income workers, encouraging continued participation in the labor force. It consists of two components:
- Basic Amount: Up to $1,428 for single individuals and $2,461 for families.
- Disability Supplement: An additional $737 for eligible individuals with disabilities.
The benefit amount decreases gradually as income rises and phases out entirely once income exceeds certain thresholds.
Eligibility Criteria
To qualify for the basic CWB, you must:
- Be a Canadian resident throughout the year.
- Be at least 19 years old on December 31, or live with a spouse, common-law partner, or dependent child.
- Have working income of at least $3,000.
- Have adjusted net income below specific thresholds (see table below).
You are not eligible if you:
- Are a full-time student for more than 13 weeks in the year (unless you have a dependent).
- Were incarcerated for 90 days or more during the year.
- Are a foreign diplomat or their family member.
Income Thresholds and Benefit Amounts
| Category | Maximum Benefit | Income Thresholds |
|---|---|---|
| Single Individual | $1,428 | Full amount if income ≤ $23,495; phases out at $33,015 |
| Family | $2,461 | Full amount if income ≤ $26,805; phases out at $43,212 |
| Disability Supplement | $737 | Phases out between $33,018 and $37,932 for singles; $48,124 to $53,037 for families |
Note: Thresholds may vary for residents of Quebec, Nunavut, and Alberta.
How to Apply for the CWB
Applying for the CWB is straightforward:
- File Your Tax Return: Complete your annual income tax return.
- Schedule 6: Fill out Schedule 6, the Canada Workers Benefit form, and submit it with your tax return.
- Disability Supplement: If applicable, ensure you have an approved Disability Tax Credit Certificate (Form T2201) on file with the CRA.
The Canada Revenue Agency (CRA) will assess your eligibility and calculate your benefit amount.
Advance Payments
Eligible individuals may receive up to 50% of their CWB in advance through the Advanced Canada Workers Benefit (ACWB). These payments are issued automatically in three installments during the year, based on the previous year’s tax return. No separate application is required.
FAQs
1. What is the minimum income required to qualify for the CWB?
You must have a working income of at least $3,000 annually.
2. Can both spouses in a family claim the CWB?
Only one person per family can claim the basic CWB amount. However, if both spouses are eligible for the disability supplement, each can claim it separately.
3. How does the disability supplement work?
The disability supplement provides up to $737 for eligible individuals. Eligibility requires approval for the Disability Tax Credit and meeting specific income thresholds.
4. Are the CWB amounts the same across all provinces?
No, Quebec, Nunavut, and Alberta have different thresholds and benefit amounts. Check with the CRA for province-specific details.
5. When will I receive the CWB payments?
If eligible, you may receive advance payments during the year and the remaining amount after filing your tax return. The CRA will notify you of the payment schedule.
Conclusion
The Canada Workers Benefit is a valuable support for low-income workers, offering up to $1,428 for individuals and $2,461 for families, with an additional $737 for those eligible for the disability supplement.
By understanding the eligibility criteria and income thresholds, you can maximize your benefit and receive the financial support you deserve.