According to the Federal government, some Canadians will be eligible to receive a new refundable tax credit and the payment is slated to begin on July 28.

The Canada Workers Benefit (CWB) will be initiated in order to help individuals and families who are working and earning a low income. The two remaining payments will be issued on October 12, 2023, and January 12, 2024.

You can claim the Canada Workers Benefit (CWB) when you file your tax return. To claim the CWB, you must either do your taxes electronically and follow the instructions in your certified tax software or if filing a paper return, fill out and submit Schedule 6, Canada workers benefit.

"The CWB has two parts: a basic amount and a disability supplement," The Government of Canada's website stated. "This initiative puts more money in the workers' pockets to help cope with the rising cost of living. Anyone who received the CWB in 2022 will receive the advanced payments, there is no need to apply."

Starting in July 2023 and based on the 2022 taxation year, the CWB will provide advance payments equal to 50 per cent of the CWB across three payments under the Advanced Canada workers benefit (ACWB).

"If you are entitled to receive the CWB, you will get up to 50 per cent of your CWB in advanced payments under what is referred to as the Advanced Canada workers benefit (ACWB). If you are entitled to receive the disability supplement, you will also receive 50 per cent of your disability supplement amount with your basic advanced payments."

You don't need to apply to receive the advanced payments. The Canada Revenue Agency (CRA) will determine your eligibility when you file your income tax and benefit return. If you're entitled to a CWB amount on line 45300 of your income tax and benefit return, the CRA will automatically send you payments.

To receive the advanced payments, the CRA must receive your income tax and benefit return before November 1 of the benefit period.

Who is eligible?

You are eligible for the basic amount of the CWB if you meet all the following conditions:

A chart showing the details of who may be eligible for a new tax credit that will be initiated at the end of July. (Graphic credit to the Government of Canada)A chart showing the details of who may be eligible for a new tax credit that will be initiated at the end of July. (Graphic credit to the Government of Canada)
  • Are a resident of Canada throughout the year
  • Are 19 years of age or older on December 31, or you live with your spouse or common-law partner or your child
  • For CWB purposes, an eligible dependant has to meet all of the following conditions:
    • Is your or your spouse's or common-law partner's child
    • Is under 19 years of age and lives with you on December 31
    • Is not eligible for the CWB
  • For CWB purposes, an eligible spouse is someone who meets all the following conditions:
    • Lives with you as your spouse or common-law partner on December 31
    • Is a resident of Canada throughout the year
  • You may be eligible for the disability supplement of the CWB if you meet all of the following conditions:

Who is not eligible?

You are not eligible for the CWB if any of the following applies:

  • Are enrolled as a full-time student at a designated educational institution for more than 13 weeks in the year unless, on December 31, you have an eligible dependant
A chart showing the details of who is not eligible for a new tax credit that will be initiated at the end of July. (Graphic credit to the Government of Canada)A chart showing the details of who is not eligible for a new tax credit that will be initiated at the end of July. (Graphic credit to the Government of Canada)
  • Are confined to a prison or similar institution for a period of at least 90 days during the year
  • Do not have to pay tax in Canada because you are an officer or servant of another country, such as a diplomat, or you are a family member or employee of that person

How much can you get?

The maximum basic amount for the CWB is $1,428 for single individuals.

"The amount is gradually reduced if your adjusted net income is more than $23,495. No basic amount is paid if your adjusted net income is more than $33,015."

Families can receive up to $2,461.

"The amount is gradually reduced if your adjusted family net income is more than $26,805. No basic amount is paid if your adjusted family net income is more than $43,212."

The maximum basic CWB amount will vary for residents of Quebec, Nunavut and Alberta.

The maximum amount for the disability supplement is $737 for single individuals.

"The CWB disability supplement is gradually reduced if your adjusted net income is more than $33,018. No disability supplement is paid if your adjusted net income is more than $37,932."

Families will receive $737. However, The CWB disability supplement is gradually reduced if your adjusted family net income is more than $43,210.

No disability supplement is paid if one spouse is eligible for the disability tax credit and your adjusted family net income is more than $48,124, or if both spouses are eligible for the disability tax credit and your adjusted family net income is more than $53,037. 

When the issuance date for the payments falls on a Saturday, a Sunday, or a federal statutory holiday, the payment will be made on the last business day prior to the issuance date.

If you did not get your payment on the expected date, you should wait 10 working days before contacting the CRA.

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