The Canada Workers Benefit Is Set To Change & Families Could Get Almost $2,500 In Advance
Single individuals can get almost $1,500.💰
Chrystia Freeland delivering the 2022 Fall Economic Statement. Right: Canadian dollars.
Changes could be coming to the Canada Workers Benefit (CWB), which would enable more single Canadians and families to receive their payments in advance.
In November, the federal government laid out its 2022 Fall Economic Statement, which included proposed changes to the Canada Workers Benefit.
Currently, the refundable tax credit is delivered through tax returns, which means most Canadians who receive it must wait until the tax year is over to get paid.
However, this is set to change, so that payments are automatically issued in advance to those who qualified for the benefit the year before.
The changes, which are still pending Royal Assent, would be effective as of July 2023, for the 2023 taxation year.
The government says millions of Canadians would qualify for the updated Canada Workers Benefit, which would provide up to $1,428 for single workers and up to $2,461 for a family this spring.
These amounts would be a combination of the existing tax return payment, plus the new advance payments for 2023 — which would be spread across three quarterly advance payments starting in July.
The Fall Economic Statement predicts the cost of the proposal would be around $4 billion over the next six years.
What is the CWB?
The Canada Workers Benefit — often known as the CWB – is a refundable tax credit that has been designed to support individuals and families who are working and earning a low income.
It has two parts, a basic amount and a disability supplement, and eligible people can currently claim it when they file their tax returns.
Who gets the Canada Workers Benefit?
There's a full eligibility criteria for the CWB, but some of the key deciders are whether you earn a working income, are a resident of Canada, are 19 years old or older, and whether you pay tax in Canada or not, among others.
Whether you qualify for the benefit as a family or an individual depends on your living situation generally, and whether your spouse or other half is also eligible.
How to apply for the Canada Workers Benefit
Unlike some other benefits, you don't have to specifically apply to receive the Canada Worker Benefit.
When you file your income tax return, you will automatically be considered and eligible people will receive their payments.
Is the Canada Workers Benefit paid monthly?
Currently, only those who are eligible to receive their Canada Workers Benefit in advance get regular payments (of up o 50% of their benefit) throughout the year.
Advance payments are usually sent on the fifth day of April, July, October and January.
If the proposal to offer the CWB quarterly to everybody receives Royal Assent, then these payment dates could change.
Do you have to pay back the Canada Workers Benefit?
No, eligible people do not have to pay back the CWB.
This article's cover image was used for illustrative purposes only.
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