Low-income Canadians are set to receive financial relief as the Advanced Canada Workers Benefit (CWB) payments are distributed today. This refundable tax credit, designed to support those struggling with the rising cost of living, is paid in three installments throughout the fiscal year, with a final payment issued after filing taxes.
Eligibility for the Canada Workers Benefit
The CWB targets low-income working Canadians and is split into two components: a basic benefit and a disability supplement. To qualify:
- Income Thresholds: Single individuals without children must have a net income of less than $33,015 (2022 tax year), while families with dependents must earn less than $43,212. For the disability supplement, thresholds are slightly higher.
- Ineligibility: Full-time students, those incarcerated for 90 days or more, and individuals who do not pay taxes in Canada are not eligible.
Payment Amounts
- Basic Benefit: Single individuals can receive up to $1,518 annually, while families can receive up to $2,616. Payments are reduced as income exceeds certain thresholds, with no benefit provided to singles earning over $35,095 or families earning over $45,934.
- Disability Supplement: Eligible recipients can receive an additional $784.
- Advance Payments: Up to 50% of the benefit is paid across three installments. The first payment is distributed today, with subsequent payments scheduled for July 11 and later in the year.
Claiming the CWB
Eligible individuals do not need to apply separately for the CWB. Payments are automatically processed based on filed tax returns. For those filing paper returns, the Schedule 6, CWB form must be included. If payments are delayed, recipients are advised to wait 10 days before contacting the Canada Revenue Agency (CRA).
This year’s updated system ensures more timely support, easing the financial burden for eligible workers as the cost of living continues to rise.