This article will explain what the Canada Workers' Benefit (CWB) is, how it works, and who is eligible to receive it.

You will know the payment dates for the year 2022 enabling you to submit your claim on time.

Canada Workers Benefit (CWB)

Canada Workers Benefit (CWB) is a scheme introduced to help low-income taxpayers.

If you are doing some work to generate your income and your earnings fall into the low-income group, you are eligible for this scheme.

This scheme is available to individuals and families.

If you are a low-income taxpayer, you will get a refundable tax credit while filing your tax return.

Through this scheme, you can claim 50 percent of your tax return in advance, and for this, you should know the CWB payment dates to apply within the due dates.

Since the date of the first quarter has already lapsed, the dates for the remaining three quarters are given below.

Dates for CWB Payment for the year 2022

Quarterly payment dates

Second-quarter, 1st April 2022.

Third-quarter, July 5th, 2022

Fourth-quarter, October 5th, October

History of Canadian Workers Benefit

Working Income Tax Benefit (WITB) is replaced by Canadian Workers Benefits (CWB).

The new scheme was introduced in 2019 and it offers the following extra benefits as compared to the previous WITB.

  1. The procedure to claim Canadian Workers Benefit credit is easier than the previous scheme.
  2. It has lower interest rates.

Who is Eligible for this Scheme?

  1. Eligibility for self:

You are eligible to get credit through CWB if:

  • You have been residing in Canada throughout the year.
  • Your age is nineteen years or more on December 31, or you are residing with your spouse or common-law-partner of your child.
  • You are working and earning an income.
  • Eligibility for Spouse:
  • Resides as the spouse or common-law partner as of December 31.
  • Resides in Canada throughout the year

Who is an Eligible Dependent?

  • Spouse or common-law-partner child
  • Child under nineteen years and living with you
  • The dependent is not eligible for CWB

Who are not eligible to CBW?

  • Full-time students who study for more than thirteen weeks in the year, and they don’t have an eligible dependable
  • Minimum nineteen days imprisonment during the year
  • Do not pay tax in Canada as he/she is an employee of another country such as Diplomats, etc.   

How to Claim Canada Workers Benefits?

  1. Fill in tax returns electronically by following the filling instructions properly
  2. When filing paper return, fill and submit “Schedule 6, Canada Workers Benefits
  3. You should enroll for direct deposit to receive your payments on time and without any disruption. And, if you do not receive your payments on time, contact CWB after ten days of the due date.  
  4. The qualifying minimum income to avail of this scheme is $3000 in most of the Canadian provinces.

How to Claim Disability Benefits?

If you are having an eligible spouse and one of you is eligible for disability credit, only that person will get the basic credit and disability credit.

In case, both of you are eligible for disability benefit and one of you qualifies for basic credit, the only eligible person will get the basic credit, and both of you will get the disability benefit. But, for this, both of you will apply separately on “Schedule 6 forms”. 

Canadian Workers Benefits (CWB) has two schemes

  1. Basic Amount:

The basic amount is available to all Canadians who qualify for CWB. This amount is governed by certain factors like eligible dependable family members, marital status, and net income.

The amount of credit is adjusted according to the income. With the increase in income, the benefits are reduced and at a certain income, the benefits are withdrawn.

  • Disability Supplement:  

Under this scheme, an extra amount is available to those who are eligible for the disability tax credit. 

You are eligible for a disability supplement if:

You are eligible for a disability tax credit and are in possession of a “Form T2201 Disability Tax Credit Certificate” and this form is filed with the Canada Revenue Agency.

How to Apply for the Advance Payment:

For applying for the advance payment, there are two options.

Option No.1:

  1. Go to your account
  2. Open the CWB Advance payment application form and fill it out properly
  3. Submit duly completed form

Option No.2:

  1. Complete Part 3 of CWB Payment Application Form-RC201
  2. Send the duly filled-in above form to the following address:

Sudbury Tax Centre,

P.O. Box 20000, Stn A

Sudbury, ON P3A 5C1

  1. Send your form well before the due date, keeping in view the cut date, and also keeping in mind the margin of mailing time.
  2. You will submit the above form every year.
Written By:
Salman Rundhawa
Salman Rundhawa is the founder of Filing Taxes. Salman provides valuable tax planning, accounting, and income tax preparation services in Toronto, Mississauga, Oakville, and Hamilton.

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