How Do Advance Payments Work and What Disqualifies Someone from the CWB?

The Canada Workers Benefit (CWB) provides essential financial support for low- and modest-income workers—but what many people don’t realize is that you don’t have to wait until tax season to receive it. Through the advance payments program, eligible workers can receive up to half of their benefit earlier, distributed throughout the year.

At the same time, it’s important to understand that not everyone qualifies for the CWB. Certain income types, life situations, and filing habits can disqualify you, even if you’re working.

This article walks through how the CWB’s advance payments work, what you need to do to receive them, and the reasons someone may be disqualified.

What Are Advance Payments?

Advance payments are a prepaid portion of the Canada Workers Benefit, available to eligible workers who apply before the start of the tax year. Rather than waiting for a lump sum at tax time, you can receive up to 50% of your estimated annual CWB in quarterly payments throughout the year.

These payments are meant to smooth out your cash flow and provide support when you’re actively working—not just after filing your return.

Payment Schedule

Advance payments are made in four installments, typically in:

• April

• July

• October

• January

Each payment equals roughly one-quarter of 50% of your expected CWB, based on your prior year’s income.

How to Apply for Advance Payments

To receive advance payments, you must submit Form RC201 – Canada Workers Benefit Advance Payments Application. You need to:

• Apply before November 1 of the year prior to when you want to receive payments

• Have filed a return for the previous year

• Still meet eligibility criteria for the current year based on income and residency

You can apply online through CRA My Account, by mail, or with the help of a tax professional. If your situation has changed since your last return—such as income level or family status—it’s important to update the CRA to avoid overpayments.

Who Should Consider Advance Payments?

Advance payments may be particularly helpful if:

• You have seasonal or part-time work and need extra support during the year

• You struggle with cash flow and prefer smaller payments more frequently

• You qualify for the CWB most years and expect your income to remain consistent

At Optimize, we help assess whether advance payments align with your income stability and cash flow needs, so you avoid surprises during tax filing.

What Disqualifies Someone from Receiving the CWB?

Even if you’re working, you may be disqualified from the CWB for several reasons. Understanding these disqualifiers can help you avoid incorrect assumptions or unexpected rejections.

Disqualification Criteria

You are not eligible for the CWB if:

• You earned no working income during the year (employment or self-employment)

• You were a full-time student for more than 13 weeks, unless you supported a child

• You were confined to a prison or similar institution for 90 days or more

• Your adjusted family net income exceeds the CWB income thresholds

• You were not a resident of Canada for the full calendar year

• You only earned non-qualifying income, such as pension, benefits, or investment income

• You are under 19 and do not live with a spouse, common-law partner, or child

What Happens If You Are Overpaid?

If you receive advance payments but no longer qualify when you file your tax return, the CRA may recover some or all of the overpaid amount. This can happen if:

• Your income rises above the CWB threshold

• You were not a resident for the full year

• You incorrectly reported your marital status or family income

In these cases, the overpayment is added to your tax balance owing, or deducted from your refund.

We help Optimize users track this risk and proactively notify you if changes in income or household status may impact your benefit eligibility.