Today, some low-income Canadians will receive early payments of workers’ benefits from the federal government.
The Advanced Canada Workers Benefit (ACWB) payments will be issued today. These payments are designed to assist individuals and families with low incomes in managing the increasing cost of living.
How much could Canadians get?
The Canada Workers Benefit (CWB) provides a basic amount and a disability supplement to eligible individuals.
The Canada Revenue Agency (CRA) calculates the benefit based on factors like marital status, income, province or territory, whether there are dependants, and eligibility for the disability tax credit.
Single individuals can receive up to $1,518 annually if their adjusted net income is $24,975 or less.
If eligible, single individuals may also receive a maximum disability supplement of $784 if their income does not exceed $35,098.
The advance payments are distributed in three installments each year. Each installment includes half of the total basic amount and half of the disability supplement, amounting to about $1,151 annually for eligible recipients.
The CRA reduces the basic amount step by step when the adjusted net income is more than $24,975. If the income goes above $35,095, no payments are given.
For the disability supplement, the CRA begins to reduce payments when a single individual’s adjusted net income exceeds $35,098. If the income is over $40,325, the individual is not eligible for the disability supplement.
Families with an adjusted net income of $28,494 or less can get a maximum basic benefit of $2,616 per year. They may also be eligible for a disability supplement of up to $784.
Advance payments for families can total up to $1,700 annually.
Benefit amounts differ for residents of Quebec, Nunavut, and Alberta.
The CRA notes that events such as death, incarceration, or emigration may affect eligibility for advance payments.
Who is eligible?
To qualify for the basic CWB payment, individuals must meet specific criteria:
- Be a Canadian resident.
- Be at least 19 years old.
- Have a working income below the threshold set by their province or territory.
For the disability supplement, individuals must:
- Qualify for the disability tax credit.
- Have an approved T2201 form on file with the CRA.
- Meet the net income level criteria.
The CRA states, “You must be a resident of Canada on the first day of the quarter to be eligible for advance payments.”
How to apply
To receive CWB payments, individuals or families must file their tax returns.
Advance payments are issued automatically based on the information in the tax returns. There is no need for a separate application.
To qualify for advance payments, tax and benefit returns should be submitted before November 1 of the benefit period.
The next installment of the Advanced Canada Workers Benefit will be distributed on July 11.