Canada Workers Benefit: Low income worker benefit from payment

Canada Workers Benefit: Low income worker benefit from payment

The first Canada Workers Benefit payment will come on 28th July, 2023, to the low- and modest-income workers of the country. This is the first automatic advance payment of the program under which low-income workers recive a certain amount to cope up with the rising living costs. Chrystia Freeland, the Deputy Prime Minister of Canada and Minister of Finance, announced this on 27 July. 

The enhancement has increased the payment and individuals will get $1,518 while families would be able to receive $2,616 split in three payments. 

The cost of living in Canada has been rising along with the inflation, and so to help the essential workers of Canada, who are usually underpaid, the government of Canada announced some enhancements in the Canada Workers Benefit back in 2021. 

What is Canada Workers Benefit? 

Canada Workers Benefit (CWB) is a refundable tax credit available for individuals and families who are not earning enough. 

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Before the enhancement was made in the CWB, individuals and families were eligible for this benefit after they filed their income tax return. But after the enhancement, an additional one million workers will benefit from this payment. Those who need the support earlier, will also be eligible for it sooner. 

Those who already applied for the CWB in 2022 do not have to apply again. They will automatically receive the payment on 28 July, 12 October, and 12 January. The final payment will come after they file their 2023 tax return. 

Who is eligible for CWB? 

In order to be eligible for the basic amount, all the following conditions must be met:

  • You must be either 19 years of age or older on 31st December, or you live with your spouse/common-law partner/child. 
  • You are a resident of Canada for the whole year. 
  • You are earning, but your net income is less than the net income level which is set by the province/territory where you live.  

How to claim the payment?

There are two ways to claim the payment. The individual can either:

  • Do their taxes electronically and then follow all the instructions that are provided in their certified tax software. 
  • In case they are filing a paper return, they have to then submit Schedule 6, Canada Workers Benefit. 

About the Advanced Canada Workers Benefit (ACWB), there’s no need to apply for it since the Canada Revenue Agency determines the eligibility when the individual files their income and benefit return. 

In case the individual is entitled to a CWB amount on line 45300, then they will receive the payment automatically, without applying for it. But before that, the Canada Revenue Agency must receive the individual’s income tax and benefit return before 1st November of the benefit period. 

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Niyati Chaurasia

Niyati Chaurasia

Niyati’s specialty lies in Canadian immigration matters along with crafting helpful, user-oriented content.

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