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Government Benefits for Workers Glossary

Master the language of tax benefits for working Canadians with this easy-to-navigate A–Z reference

 

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


  • Adjusted Family Net Income (AFNI) – The total income of an individual and their spouse or common-law partner, minus specific deductions, used by the CRA to determine eligibility for income-tested benefits such as the Canada Workers Benefit and GST/HST credit.
  • Adjusted Net Income – A modified version of net income used by the CRA to determine eligibility for income-tested benefits like the Canada Workers Benefit, including both individual and family income components.
  • Advance CWB Payments – Optional quarterly payments of up to 50% of the Canada Workers Benefit, requested via Form RC201, to provide regular income support throughout the year.
  • Advance Payment Schedule (CWB) – The quarterly distribution timeline (April, July, October, January) for Canada Workers Benefit advance payments, totaling up to 50% of the estimated benefit.
  • AFNI Inclusions and Exclusions – Categories of income that are either included (e.g., employment income, investment income) or excluded (e.g., GST/HST credit, RDSP withdrawals) from Adjusted Family Net Income calculations.
  • Canada Employment Amount – A non-refundable tax credit that helps offset basic work-related costs for employees, automatically applied to those who report T4 income.
  • Canada Workers Benefit (CWB) – A federal refundable tax credit designed to support low- and modest-income workers, consisting of a basic amount and a disability supplement.
  • Combined Family Income – The total net income of both spouses or common-law partners used to determine eligibility and payment amount under the family component of the Canada Workers Benefit.
  • CWB Disability Supplement Eligibility – The specific criteria required to receive the disability portion of the Canada Workers Benefit, including a valid Disability Tax Credit (DTC), a minimum amount of earned income, and residence in Canada.
  • CWB Overpayment – A situation where an individual receives more Canada Workers Benefit than they are entitled to, often due to changes in income, residency, or marital status, which may require repayment to the CRA.
  • CWB Repayment Obligation – The requirement to return overpaid Canada Workers Benefit amounts, typically through a tax balance adjustment or refund reduction.
  • Disability Supplement – An additional amount provided under the Canada Workers Benefit for individuals eligible for the Disability Tax Credit (DTC), subject to working income and DTC certification.
  • Disability Tax Credit (DTC) – A non-refundable tax credit for individuals with a severe and prolonged impairment; qualifying for this credit is a requirement to receive the CWB disability supplement.
  • Disqualification from CWB – Specific criteria that prevent individuals from receiving the Canada Workers Benefit, including lack of working income, prolonged full-time study, incarceration, or high adjusted family net income.
  • Eligible Dependant – An individual who relies on the taxpayer for support and qualifies under CRA rules for benefit purposes; often includes minor children, dependent spouses, and occasionally relatives with disabilities.
  • Employment-Specific Tax Credit – A credit available only to individuals who earn income from employment, such as the Canada Employment Amount.
  • Family Structure (CRA Benefit Calculation) – The household composition used to determine eligibility and benefit levels, including the presence of a spouse, common-law partner, or qualifying dependants.
  • Form RC201 – The CRA form used to request advance payments of the Canada Workers Benefit before the start of a calendar year.
  • Ineligibility Criteria – Situations where individuals do not qualify for the Canada Workers Benefit, including full-time students (without dependents), incarceration for 90+ days, or lack of earned income.
  • Net Income – The total income reported on Line 23600 of the federal tax return, forming the basis for calculating Adjusted Net Income and AFNI.
  • Net Income Thresholds – The income ranges above which the Canada Workers Benefit begins to phase out and eventually becomes unavailable, based on individual or family status and province of residence.
  • Non-Refundable Tax Credit – A type of tax credit that can reduce the amount of tax owed to zero but does not result in a refund if it exceeds the tax liability.
  • Partial Benefit Eligibility – A condition where individuals earning above the base threshold but below the cutoff may still receive a reduced amount of the Canada Workers Benefit.
  • Resident Requirement – A condition stating that an individual must be a resident of Canada for the entire tax year to qualify for the Canada Workers Benefit.
  • Schedule 6 – The federal income tax form used to calculate and claim the Canada Workers Benefit on your tax return.
  • Spouse or Common-Law Partner – An individual recognized by the CRA as a partner based on marriage, 12 months of cohabitation in a conjugal relationship, or shared parenthood of a child.
  • Working Income – Employment or self-employment income used to determine eligibility for the CWB and other income-based benefits; does not include benefits or investment income.
  • Working Income Requirement – The need to have employment or self-employment income to be eligible for the Canada Workers Benefit or its disability supplement.