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Understanding the Canada Workers Benefit (CWB)

Understand how this refundable tax credit helps low- and modest-income workers keep more of their earnings and receive extra support throughout the year

For many Canadians, employment does not always guarantee financial stability. The cost of living, taxes, and basic work expenses can make it hard to get ahead—especially for those earning low or modest incomes. The Canada Workers Benefit (CWB) is designed to address this challenge.

The CWB is a refundable tax credit that provides extra income support to eligible workers. Unlike non-refundable credits, which only reduce the amount of tax you owe, refundable credits like the CWB can result in a direct cash payment—even if you owe no tax at all.

This matters when you are working part-time, returning to the workforce after a leave, or earning close to the minimum wage. If you meet the eligibility criteria, the CWB can help reduce financial pressure and reward you for staying employed.

What Is the Canada Workers Benefit?

The Canada Workers Benefit is a federal income support program that tops up the earnings of eligible workers. It provides two components:

  • A basic amount for eligible individuals or families with earned income

  • A disability supplement for workers with an approved disability credit

The CWB is meant to incentivize work, reduce poverty, and provide financial support for those whose earnings fall below a certain income threshold.

For 2024, the maximum basic CWB amounts are:

  • $1,518 for single individuals

  • $2,616 for families (couples or single parents)

The amount begins to phase out as income rises above the threshold, and is reduced to zero at higher income levels.

Who Is Eligible?

To qualify for the CWB, you must meet all of the following criteria:

  • Be at least 19 years old on December 31 of the tax year, or live with your spouse/common-law partner or child

  • Earn working income from employment or self-employment

  • Be a resident of Canada throughout the year

  • Have net income below the cutoff (varies slightly by province and family situation)

You are not eligible if you:

  • Are a full-time student for more than 13 weeks (unless supporting a child)

  • Are confined to a prison or similar institution for at least 90 days

  • Do not have any earned working income

Tip: Even if you earn only a few thousand dollars from part-time or seasonal work, you may qualify for CWB. File your return—even if you owe nothing—to receive it.

How the CWB Is Paid

The CWB is unique because you can receive it as a lump sum after filing your tax return, or request to receive up to 50% of it in advance payments throughout the year.

To receive advance payments, you must apply using Form RC201 before the start of the calendar year. These quarterly payments help provide more regular support.

The rest of the benefit is calculated and paid when you file your tax return. If your income or work situation changed significantly during the year, your final CWB amount may differ from the advance payments you received.

At Optimize, we help assess whether it makes sense to request advance payments based on your cash flow needs and expected income.

Disability Supplement

If you qualify for the Disability Tax Credit (DTC), you may also be eligible for an additional CWB supplement. In 2024, the maximum disability supplement is $737.

To receive this amount, you must meet all regular CWB criteria, have a valid DTC certificate, and earn above a certain working income minimum.

Important: You must claim the disability supplement on your return. It is not applied automatically, even if you qualify for the DTC.

Provincial and Territorial Variations

While the CWB is a federal benefit, some provinces and territories have enhanced programs that adjust the amounts or eligibility based on regional cost-of-living differences.

Currently, provinces like Quebec, Alberta, Nunavut, and British Columbia offer their own versions or modifications of the CWB. These are automatically factored into your return when you file.

At Optimize, we ensure your return includes the correct regional benefit calculation based on your province of residence as of December 31.

How to Apply

You do not need to submit a separate application unless you are requesting advance payments. The CWB is claimed by:

  • Filing your T1 income tax return, and

  • Completing Schedule 6 – Canada Workers Benefit

The CRA will calculate your final CWB and issue a refund if you qualify. If you were eligible but didn’t claim it in a past year, you may be able to adjust a prior return to receive retroactive payments.

Tip: If your income is under $35,000–45,000 and you are working regularly, the CWB could offer significant support. File your return every year, even if your income is low—you might be leaving money unclaimed otherwise.