Canada Workers Benefit : Canada Workers Benefit Payment Dates 2024

The Canada Workers Benefit (CWB) is a refundable tax credit designed to assist low-income workers across the country. With rising inflation and increased living costs, this benefit provides much-needed financial relief to workers earning modest incomes. The CWB has been updated for 2024, with the maximum annual benefit increasing to $1,518 for individuals and $2,616 for families. This article covers eligibility, payment dates, how to claim, and answers common questions to help you understand the Canada Workers Benefit.

What is the Canada Workers Benefit (CWB)?

The Canada Workers Benefit is a federal government program that offers a tax credit to low-income workers, helping them increase their take-home pay. It is designed to incentivize employment by rewarding those who are engaged in the workforce but earning below a certain income threshold. The benefit also aims to reduce poverty and provide additional financial relief for eligible workers.

The CWB has two components:

Basic Amount: For low-income individuals and families.
Disability Supplement: For eligible workers with disabilities.

Eligibility for Canada Workers Benefit

To be eligible for the CWB, you must meet certain criteria:

Employment Income: You must have earned income from employment or self-employment.
Age: You must be at least 19 years old or living with a spouse or common-law partner.
Residence: You must be a resident of Canada for income tax purposes.

However, you are not eligible if

You are a full-time student for more than 13 weeks during the year (unless you have a dependent).
You were incarcerated for more than 90 days in the year.
You do not meet the minimum income requirements or your income exceeds the threshold.

How Much Can You Receive?

The amount you can receive through the CWB depends on your income, marital status, and whether you have children. The CWB provides a basic benefit and a disability supplement.

Basic Benefit:
- Single individuals without children: You can receive up to $1,518 per year. The benefit begins to reduce as your income exceeds $33,015 and is phased out completely if your income exceeds $43,212.
- Families (couples and parents): Families can receive up to $2,616 per year. The benefit starts to reduce when family income exceeds $43,212 and is phased out completely if it exceeds $59,411.
Disability Supplement:
- An additional benefit of up to $737 is available for individuals with disabilities.

The amount you receive depends on your income level and will be calculated when you file your annual tax return.

How to Apply for Canada Workers Benefit

You don’t need to apply separately for the CWB; it is automatically calculated when you file your income tax return. To ensure you receive the CWB:

File Your Tax Return: Even if you do not have to pay taxes, you must file a tax return to receive the CWB.
Indicate Disability Supplement (if applicable): If you are eligible for the disability supplement, ensure that you have a valid Disability Tax Credit certificate on file with the Canada Revenue Agency (CRA).
Receive Payments: The CWB can be received as a lump sum after your tax return is processed or you can apply for advance payments throughout the year. To receive advance payments, you must apply using Form RC201 before April 30 of the benefit year.

Basic benefit amounts

The maximum basic benefit amount is $1,428 for single workers, but individuals with an adjusted net income over $23,495 will receive a reduced benefit. Individuals with an adjusted net income over $33,015 won’t receive a basic benefit.

The maximum basic benefit amount for families is $2,461. Families with an adjusted net income over $26,805 will receive a reduced benefit, and families with an adjusted net income over $43,212 will not receive the basic benefit.

Disability supplement amounts

Single individuals can receive up to $737 as a CWB disability supplement. That amount will be reduced for those with an adjusted net income over $33,018, and those with an adjusted net income over $37,0932 will not receive the disability supplement.

The maximum disability supplement for families is $737 and is reduced for families with an adjusted net income over $43,210. If one spouse earns over $48,124, no disability benefit will be paid. In families where both spouses are eligible for the disability tax credit, the benefit will not be awarded if the adjusted family net income is over $53,037.

Enhancements to the Canada Workers Benefit

In July 2023, the Canada Revenue Agency (CRA) announced an enhanced Canada Workers Benefit to provide additional support for the lowest-paid individuals and families in Canada. With the workers benefit enhancement, single individuals will receive a total of $1,518, and eligible families will receive a total of $2,616 split between three advance payments in the 2023 fiscal year: July 2023, October 2023, and January 2024.

Eligibility requirements for the CWB

To be eligible for the basic Canada Worker’s Benefit, you must meet the following criteria:

Earn at least $3000 from working (not through another form of benefit) and have a net income below the net income level for your province or territory of residence
Be 19 or older on December 31, 2022, or living with your spouse/common-law partner or your child
Be a resident of Canada throughout the year

If any of the following are true, you are not eligible for the CWB:

You were enrolled as a full-time student for more than 13 weeks in the year (unless you had an eligible dependent living with you at any point during the year)
Were in prison (or a similar institution) for 90 days or more during the year
Are tax-exempt as a foreign diplomat or a family member or employee of such a person

Canada Workers Benefit Disability Supplement eligibility

You may be eligible for the disability supplement if you meet the following criteria:

You are eligible for the Disability Tax Credit (Form T2201), and your approved disability tax credit certificate is on file with the CRA
You earn working income below the maximum net income allowable for your province or territory

How do I apply for the Canada Workers Benefit?

To claim the Canada Workers Benefit, you must fill out Schedule 6 when filing your taxes. If you use electronic accounting software, it should walk you through determining your eligibility and inputting the necessary information. If in doubt, refer to the specific documentation for the tax software you use.

If you file a paper tax return, fill out the Schedule 6 form and submit it with the rest of your tax paperwork.

Payment dates

If you are eligible to receive the Canada Workers Benefit, the CRA will send you payments automatically.

The Advanced Canada Workers Benefit (ACWB) is automatically enabled if you submit your income tax and benefit return before November 1st of the benefit period. When you do so, you will receive up to 50% of the CWB benefit on a preset schedule.

Payment dates for the CWB advance

The automatic advance payment dates for the 2024 Canada Workers Benefit are:

January 12, 2024
Julsy 12, 2024
October 11, 2024

In instances where the payment date falls on a weekend or a federal statutory holiday, payments will be remitted on the last business day before the payment date.

Additional Tax Credits for Low-income Canadians

If you qualify for the Canada Workers Benefit, there’s a chance you’re eligible for these other tax credit programs too.

Canada Child Benefit (CCB)

This is a tax-free monthly payment that goes to the primary caregiver of a child under 18. The CCB is intended to offset the costs associated with raising children. It is typically awarded only to the primary caregiver or parent. When two parents live in the home, the CCB usually goes to the female parent. Visit this site to review the eligibility requirements for this benefit.

Canada Dental Benefit

This benefit is offered on behalf of the federal government to lower dental costs for families with an income under $90,000 per year. The benefit applies to eligible dependents under 12 years old, and families must apply for the benefit. Once the application is approved, the CRA will administer payments automatically. The amount of money awarded depends on the adjusted family net income for the year. To learn more, visit this site.

Can I get a loan while receiving the Canada Workers Benefit?

The Canada Workers Benefit is considered income in the eyes of lenders, meaning it may help you qualify for a loan. However, lenders will examine other factors, such as your debt-to-income ratio, your credit score, and your employment status when determining loan eligibility.

Before taking out a personal loan, ensure you have a budget in place to avoid over-extending yourself with additional payments. If you’re struggling to make ends meet, try looking for ways to earn more money, rather than taking on more debt to cover your expenses.