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The Canada Workers Benefit (CWB) is a refundable tax credit designed to support low-income individuals and families who are actively employed.
It aims to supplement earnings and alleviate financial pressures associated with the rising cost of living. The benefit comprises two components: a basic amount and a disability supplement for eligible recipients.
Advance Canada Workers Benefit (ACWB) Payments
To provide timely financial assistance, the Canada Revenue Agency (CRA) issues advance payments of the CWB, known as the Advanced Canada Workers Benefit (ACWB).
These payments are distributed three times a year and represent up to 50% of the annual CWB entitlement.
ACWB Payment Schedule for 2025:
| Payment Date | Details |
|---|---|
| January 10, 2025 | First advance payment |
| July 11, 2025 | Second advance payment |
| October 10, 2025 | Third advance payment |
Note: There is no ACWB payment scheduled for May 2025.
Eligibility Criteria for the CWB
To qualify for the Canada Workers Benefit, applicants must meet the following conditions:
- Age and Residency: Must be at least 19 years old by December 31 of the tax year and a resident of Canada for the entire year.
- Income Thresholds:
- Single individuals: Adjusted net income must be less than $35,095.
- Families: Adjusted net income must be less than $45,934.
- Exclusions:
- Full-time students enrolled for more than 13 weeks in the year (unless they have an eligible dependant).
- Individuals incarcerated for 90 days or more during the year.
- Persons exempt from paying taxes in Canada, such as certain diplomats.
Benefit Amounts for 2025
The amount received under the CWB depends on individual circumstances, including income level and family status.
| Category | Maximum Annual Benefit |
|---|---|
| Single individuals | $1,518 |
| Families | $2,616 |
| Disability supplement | $784 |
Note: The actual amount received may be less, depending on income and other factors.
How to Apply for the CWB
Applying for the Canada Workers Benefit involves the following steps:
- File Your Tax Return: Even if you have no taxable income, filing your annual tax return is essential to calculate your CWB entitlement.
- Complete Schedule 6: This form calculates your CWB amount. If you’re eligible for the disability supplement, ensure the relevant section is completed.
- Advance Payments: If you received the CWB in the previous year and filed your tax return before November 1, you are automatically considered for advance payments. No separate application is necessary.
The Canada Workers Benefit offers crucial financial support to low-income workers across Canada. By understanding the eligibility criteria and application process, you can ensure you receive the benefits you’re entitled to.
Remember to file your tax return on time and complete Schedule 6 to facilitate the calculation and distribution of your benefit.
Stay informed about payment schedules to manage your finances effectively throughout the year.
FAQs
Is there a CWB payment in May 2025?
No, the ACWB payments are scheduled for January, July, and October 2025. There is no payment in May.
Do I need to apply separately for advance payments?
No, if you received the CWB in the previous year and filed your tax return before November 1, you are automatically considered for advance payments.
How can I check my CWB payment status?
You can monitor your payment status by logging into your CRA My Account online portal.