The Canada workers benefit (CWB) is a refundable tax credit that helps individuals with a low income. Recently, the federal government made some changes to these benefits. The changes are a part of the new Affordability Plan.
The Department of Finance said that the CWB would increase in 2022. This can impact around three million Canadians.
It will be a huge support for low-income workers in Canada. The Government said that with these benefits, eligible workers can get additional $1,200 this year. Moreover, as a couple you can get additional $2400.
It is expected that these changes will cost around $1.7 billion in 2022. However, these changes are essential to beat the inflation. It will help the government to make Canada a little more affordable for everyone.
So, if you are not sure about these benefits or the eligibility, don’t worry, we have got you covered.
The article enlists everything you should know about the Canada Workers Benefits including eligibility and how to apply.
What is Canada Workers Benefit?
These benefits are for individuals and families working but earning a low income. CWB is divided into two parts-
- Basic amount
- Disability Supplement.
You get these benefits when you file your income tax return. Also, if you are eligible, you can get almost half of these benefits in advance.
So, you may not need to wait for your tax time.
Who is eligible For Canada Workers Benefit?
To be eligible for these benefits you—
- Should be earning working income
- Be a resident of Canada throughout the year
- Lastly, you need to be 19 years of age OR be living with your spouse or common-law partner
However, you cannot apply for these benefits if you are—
- A full-time student
- Confined to prison
- Don’t pay tax in Canada
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How to Apply?
To get the CWB you can either-
- Apply online. Make sure you follow the instructions in your certified tax software
- Or, you can apply it on paper. If you are doing it through paper, you need to fill out and submit Schedule 6, Canada workers benefit.
To get the disability supplement-
- If you or your eligible spouse is eligible for the disability tax credit, the applicant should claim the basic amount and the disability supplement.
- However, if both of you are eligible, only one can claim the basic amount. But, each of you needs to claim the disability supplement on a separate Schedule 6.