Single Canadians can also get up to $1,379 via the Canada Workers Benefit.💰
Following an update to the Canada Workers Benefit eligibility criteria, as many as 3.2 million Canadians now qualify for the refundable tax credit.
As of June 30, approximately 1 million more low-income workers have become eligible for the "sizeable" support, which offers almost $2,400 for families and $1,400 for single Canadians.
According to the feds, the expansion will "increase the disposable income available to low-wage workers and provide incentives for workers to rejoin the workforce."
If you think you might qualify for the money, or want to find out more about claiming it, here's what you need to know:
🆕 Through #Budget2021, the Liberal government is launching an historic expansion of the Canada Workers Benefit – he… https://t.co/eGZfos0dDo— Liberal Party (@Liberal Party) 1625082486.0
Who can get it?
The Canada Workers Benefit, sometimes called the CWB, is a refundable tax credit that aims to support Canadians who are working but earning a low income.
It has two parts: a basic amount and a disability supplement.
Until recently, the eligibility criteria excluded many low-wage workers from the program.
However, following the expansion, the benefit is available to those with incomes up to:
- $32,244 as single Canadians (without children)
- $42,197 as single-earner families
- $56,197 as double-earner families
Secondary earners in couples are now allowed to exclude up to $14,000 of their income when calculating the benefit, "allowing them to access a more generous tax refund."
How much is on offer?
The amount CWB applicants can expect to receive depends on several factors. This includes things like their income, marital status, where they live and their eligibility for the disability tax credit. It is unclear if the following numbers, currently displayed on the government's website at time of writing, have yet to be updated to reflect the expansion of eligibility.
The maximum amount single individuals can claim is $1,381. This is gradually reduced if the person's adjusted net income exceeds $13,064.
The maximum amount that Canadian families can get is $2,379. This is slowly reduced if the claimant's adjusted family net income exceeds $17,348.
When it comes to the disability supplement, single individuals can claim a maximum of $713. This is reduced if the individual's adjusted net income is more than $24,569.
Families can also get a maximum of $713, gradually reduced if the family's adjusted net income exceeds $37,176.
The Canada Revenue Agency (CRA) notes that the maximum basic CWB amount and the disability supplement amount will vary for residents of Quebec.
How do I apply?
As the CWB is a refundable tax credit, it should be claimed at the same time an individual's income tax return is filed.
That said, eligible individuals and families can get up to 50% of the CWB in advance payments, instead of waiting for tax time. These payments are usually sent on the fifth day of April, July, October and January.
Canadians can apply for the CWB by completing their taxes and following the instructions given in their certified tax software. Alternatively, there's a form available online.
Those hoping to get advance payments can apply via the "Canada workers benefit advance payments application" section of My Account.
Alternatively, applicants can fill out Form RC201. The section to apply for the disability supplement is included as part of this document. The CRA must receive this by August 31, 2021.
*This article's cover image is for illustrative purposes only.
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