Working hard should be rewarded, and the Canada Workers Benefit (CWB) recognizes that. It’s a refundable tax credit designed to give a helping hand to low-income earners and families. Whether you’re just starting out or supporting loved ones, the CWB can make a real difference in your bottom line.
What is the CWB?
The CWB is a two-part credit:
- Basic amount: This amount is based on your income, marital status, and any eligible dependants.
- Disability supplement: If you or your spouse/partner have a disability and meet the eligibility criteria, you may qualify for an additional amount.
Benefits of the CWB:
- Reduces your taxes owing: The CWB lowers the amount of income tax you have to pay, or it may even result in a refund.
- Helps with living expenses: The extra money can be used for everyday necessities or to save for future goals.
- Supports low-income earners: The CWB recognizes the challenges faced by those working hard but struggling to make ends meet.
Who is eligible?
To be eligible for the CWB, you must:
- Have filed a tax return for the year
- Have earned working income (from employment or self-employment) of at least $3,000 in the previous year
Your eligibility for the amount you receive will depend on factors like:
- Your total income
- Marital status
- Number of dependants
- Disability (if applicable)
How to claim the CWB:
You don’t need to apply separately for the CWB. Simply file your income tax return and claim the credit on Schedule 6. The Canada Revenue Agency (CRA) will calculate your benefit based on your information.
Advanced Canada Workers Benefit (ACWB):
If you’re eligible for the CWB, you may also be entitled to receive a portion of it in advance payments throughout the year through the ACWB. This can help with budgeting and managing your finances.
How can CPAPROSERVICE assist you?
Filing taxes can be complex, especially when claiming credits like the CWB. Our team of CPAs at CPAPROSERVICE can handle the entire process for you, ensuring you receive the maximum CWB benefit you’re entitled to. We’ll ensure your return is filed accurately and on time, so you can focus on what matters most.
