The Canada Workers Benefit (CWB) is a refundable tax credit aimed at providing financial support to low-income individuals and families who are actively participating in the workforce. It encourages employment by supplementing the earnings of working Canadians and can significantly increase your refund at tax time.
Introduced as a replacement for the Working Income Tax Benefit (WITB), the CWB has been enhanced in recent years to offer greater support and more generous eligibility thresholds. Whether you’re working full-time, part-time, or seasonally, understanding the Canada Workers Benefit can help you determine if you qualify and how much you could receive.
1. What Is the Canada Workers Benefit?
The Canada Workers Benefit is a federal refundable tax credit that provides income support to low-income workers. Unlike non-refundable credits, the CWB can result in a tax refund even if you owe no income tax. The benefit consists of two components:
- Basic amount: A fixed amount based on earned income and family status
- Disability supplement: An additional amount for eligible individuals with a disability
Since the CWB is refundable, eligible individuals will receive it as part of their tax refund or advance payments throughout the year if they apply in advance.
2. CWB Eligibility Criteria
To be eligible for the Canada Workers Benefit in 2025, you must meet the following criteria:
- You are at least 19 years old on December 31, 2025 (or living with a spouse/common-law partner or child)
- You earned working income in the tax year (employment or business income)
- You are a resident of Canada for the entire year
You are not eligible for the CWB if:
- You are a full-time student for more than 13 weeks (unless you have an eligible dependent)
- You were confined to a prison or similar institution for 90 days or more
- You do not have working income
3. What Counts as Working Income?
Working income for CWB purposes includes:
- Employment income (wages, salaries, tips)
- Net self-employment or business income
- Taxable scholarships and bursaries (for full-time students with dependents)
Working income does not include pension income, EI benefits, Canada Child Benefit (CCB), or investment income.
4. Income Thresholds and Phase-Outs
The amount of CWB you can receive depends on your net income and family status. The benefit starts reducing once your income reaches a certain level. As of 2025, estimated figures are:
Single Individuals
- Maximum basic CWB: approx. $1,428
- Income phase-out starts at: $23,495
- Completely phased out at: approx. $33,000
Families (with spouse or common-law partner)
- Maximum basic CWB: approx. $2,461
- Phase-out begins at: $26,805
- Fully phased out around: $47,000 (depends on province)
These thresholds are updated annually by the CRA and can vary slightly by province or territory.
5. CWB Disability Supplement
If you are eligible for the Disability Tax Credit (DTC), you may also qualify for the CWB disability supplement. The criteria include:
- Being approved for the DTC (Form T2201 must be submitted and approved)
- Having working income
- Meeting the same age and residency rules as the basic CWB
The maximum disability supplement for 2025 is estimated at around $737 for singles and $1,474 for couples when both spouses are eligible.
6. How to Apply for the CWB
You can apply for the CWB when you file your annual tax return by completing:
- Schedule 6 – Canada Workers Benefit
- Provide your income and family information on the T1 General form
If you’re eligible for the disability supplement, ensure the CRA has a valid DTC certificate on file. No additional form is required for the disability component.
7. Advance Payments Option
The CWB allows for advance quarterly payments so you don’t have to wait until tax season. To receive advance payments in 2025, you must apply by August 31, 2024 using:
- Form RC201 – Canada Workers Benefit Advance Payment Application
- You can also apply through your CRA My Account
Advance payments are issued four times per year, usually in July, October, January, and April. This provides better cash flow for lower-income households throughout the year.
8. CWB and Provincial/Territorial Supplements
Some provinces and territories offer additional supplements to the federal CWB, such as:
- British Columbia Low Income Climate Action Tax Credit
- Ontario’s Low-Income Workers Benefit
- Quebec Work Premium
These are generally calculated automatically when you file your federal return but may require provincial-specific documentation in certain cases.
9. Common Mistakes to Avoid
- Failing to apply for the DTC if you qualify for the disability supplement
- Not completing Schedule 6 during tax filing
- Incorrectly reporting income or family status
- Not updating the CRA if your marital status changes mid-year
- Missing the advance payment application deadline
Always double-check your CRA account and ensure your personal information and marital status are up to date before tax filing.
10. Can You Receive CWB If You Have No Tax Owing?
Yes. Since the CWB is refundable, it is paid even if you don’t owe taxes. That means eligible individuals with low income can receive the CWB as a direct deposit or cheque from the CRA as part of their tax refund.
This makes the CWB a valuable benefit for Canadians in part-time, seasonal, or minimum wage jobs who may otherwise not benefit from non-refundable credits.
11. CWB and Other Government Benefits
The Canada Workers Benefit does not affect your eligibility for most other government programs, including:
- Canada Child Benefit (CCB)
- GST/HST Credit
- Provincial social assistance (varies by region)
However, because it increases your income, it may slightly reduce income-tested benefits in future years depending on your total household earnings.
12. Final Thoughts
The Canada Workers Benefit is one of the most important tools for supporting low-income earners in Canada. Whether you’re single, married, with or without dependents, or living with a disability, you may be eligible for a substantial refundable credit that can boost your financial situation.
To take full advantage of the CWB, ensure you meet the eligibility criteria, file your return on time, and consider applying for advance payments if cash flow is a concern. For complex situations involving self-employment, disability, or changing family status, speaking with a tax advisor can help you maximize your entitlements.
Don’t leave money on the table—check your eligibility and claim your CWB today!
