Low-income individuals and families across Canada are set to receive advanced payments of the Canada Workers Benefit (CWB) from the federal government starting this Friday.
What Is the Advanced Canada Workers Benefit (ACWB)?
The ACWB is a refundable tax credit designed to help low-income workers manage the rising cost of living, according to the Canada Revenue Agency (CRA). Payments are calculated based on various factors, including marital status, province or territory of residence, income level, whether the individual has dependents, and eligibility for the disability tax credit.
Payment Details
The CWB consists of a basic amount and a disability supplement. Advanced payments, distributed in three instalments annually, cover half of the total basic amount and disability supplement.
Maximum Basic Amounts:
- Single Canadians: Up to $1,518 annually, if their adjusted net income is $24,975 or less.
- Families: Up to $2,616 annually, if their adjusted net income is $28,494 or less.
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Disability Supplement:
- Singles and Families: Up to $784 annually, if their adjusted net income does not exceed $35,098.
Advanced payments for the full year can total up to $1,151 for single individuals and $1,700 for families.
Income Reduction Thresholds
The CRA gradually reduces the CWB amount for incomes above certain thresholds:
- Singles: No payments are issued if adjusted net income exceeds $35,095.
- Families: Payments cease if adjusted net income exceeds $42,197.
- Disability Supplement: Phased out for incomes exceeding $35,098 and eliminated at $40,325.
Payment amounts may vary for residents in Quebec, Nunavut, and Alberta. Factors such as death, incarceration, or emigration can also affect eligibility and payment amounts.
Eligibility Criteria
To qualify for the basic CWB payment, individuals must meet the following requirements:
- Be a Canadian resident.
- Be at least 19 years old.
- Have a working income below the set threshold for their province or territory.
To receive the disability supplement, individuals must also:
- Be eligible for the disability tax credit.
- Have an approved T2201 form on file with the CRA.
Additionally, recipients must be Canadian residents on the first day of the payment quarter to qualify for advanced payments.
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How to Apply
CWB payments are automatically calculated and distributed based on filed tax returns. Individuals and families must file their income tax and benefit returns before November 1 of the benefit period to qualify for advanced payments.
The next scheduled ACWB payment will be issued on July 11.
