The Canada Workers Benefit (CWB) is a refundable tax credit designed to support low-income individuals and families who are actively employed. It comprises two components:
- Basic Amount: Provides financial assistance based on income and family status.
- Disability Supplement: Offers additional support for eligible individuals with disabilities.
Unlike non-refundable credits, the CWB can result in a payment even if no taxes are owed, effectively boosting the income of eligible workers.
How Much Can You Receive in 2025?
Benefit amounts vary depending on individual circumstances.
Basic CWB Amounts:
| Category | Maximum Benefit | Phase-Out Begins at Income | Benefit Eliminated at Income |
|---|---|---|---|
| Single | $1,590 | $26,149 | $36,749 |
| Family | $2,739 | $29,833 | $48,093 |
Disability Supplement:
| Category | Maximum Supplement | Phase-Out Begins at Income | Supplement Eliminated at Income |
|---|---|---|---|
| Single | $821 | $36,748 | $42,222 |
| Family | $821 | $48,091 | $53,565 (one eligible spouse) |
| $59,038 (both eligible spouses) |
Who Is Eligible?
To qualify for the CWB in 2025, applicants must:
- Be a resident of Canada throughout the year.
- Be 19 years of age or older on December 31, 2024.
- Earn a minimum of $3,000 in working income.
- File a 2024 income tax return.
Ineligibility Criteria:
- Full-time students enrolled for more than 13 weeks in the year (unless they have an eligible dependent).
- Individuals incarcerated for 90 days or more during the year.
- Persons exempt from paying Canadian taxes (e.g., certain diplomats).
When Will Payments Be Made?
The Canada Workers Benefit is disbursed in two ways:
- Lump-Sum Payment: Issued after filing the 2024 tax return in 2025.
- Advance Payments: Eligible individuals can receive up to 50% of their benefit in advance, distributed in three installments:
- January 10, 2025
- July 11, 2025
- October 10, 2025
Advance payments are automatically calculated and issued by the Canada Revenue Agency (CRA) based on the previous year’s tax return.
How to Apply?
Applying for the CWB involves:
- Filing Your Tax Return: Submit your 2024 income tax return by April 30, 2025.
- Completing Schedule 6: This form calculates your CWB and, if applicable, the disability supplement. Most tax software includes this automatically.
- Ensuring Accurate Information: Keep your personal and financial details up to date with the CRA to avoid delays.
The Canada Workers Benefit offers substantial financial support to low-income workers and families, with potential benefits up to $2,739 in 2025.
By understanding eligibility criteria and ensuring timely tax filing, eligible Canadians can maximize this opportunity to enhance their financial well-being.
FAQs
Can I receive the CWB if I have no tax payable?
Yes, the CWB is a refundable tax credit, meaning you can receive it even if you owe no taxes.
Do I need to apply separately for advance payments?
No, advance payments are automatically issued by the CRA based on your previous year’s tax return.
How do I know if I qualify for the disability supplement?
Eligibility for the disability supplement requires approval for the Disability Tax Credit (DTC). Ensure you have a valid DTC certificate on file with the CRA.