For lower-income working Canadians, refundable tax credits can make a significant difference in annual cash flow, tax refunds, and long-term financial security. One of the most important yet often misunderstood programs is the Canada Workers Benefit (CWB). Alongside this are several federal and provincial income supplements that, when coordinated strategically, can help eligible individuals and families keep more of what they earn.

In this blog, we’ll explain the eligibility criteria for the CWB and related programs, how much you could receive, and most importantly, how to structure your income and claims to maximize these credits.

What is the Canada Workers Benefit (CWB)?

The Canada Workers Benefit (CWB) is a refundable tax credit designed to help low-income individuals and families who are actively participating in the workforce. It provides direct financial support through both a basic amount and a disability supplement. This program replaced the Working Income Tax Benefit (WITB) in 2019 and has since expanded. As of 2023, the government introduced automatic advance payments of the benefit, helping recipients receive support throughout the year, rather than waiting for tax season.

Key Features of the CWB

Refundable tax credit (you can receive it even if you owe no tax)

Paid out through your tax return or through quarterly advance payments

Includes a basic amount and a disability supplement

Income-tested, gradually reduced as income rises

Calculated based on earned income, not total income (investment or passive income doesn’t qualify)

Eligibility for the CWB

To qualify for the basic CWB, you must meet the following conditions:

✅ You must:

Be a resident of Canada for the entire year

Be 19 years or older on December 31, or living with a spouse/common-law partner or child

Have earned income from employment or self-employment

File an individual income tax return

You are NOT eligible if:

You are a full-time student for more than 13 weeks during the year (unless you have an eligible dependant)

You are incarcerated for 90+ days during the year

You do not have eligible earned income

Your net income exceeds the phase-out threshold

CWB Income Thresholds and Payment Amounts (2024–2025)

Note: Exact figures may vary by province or territory. Below are national averages for illustration.

Basic CWB Amount

You are a full-time student for more than 13 weeks during the year (unless you have an eligible dependant)

Begins phasing out at:

~$24,975 for individuals
~$26,805 for families

Fully phased out at:

~$34,000 for individuals
~$56,000 for families

Disability Supplement

~Maximum benefit: ~$784
~Phases out at higher income thresholds

You can check the CRA’s CWB estimator online to get your personalized estimate.

CWB Advance Payments: How They Work

Since 2023, eligible individuals can receive up to 50% of their estimated CWB in advance quarterly payments, instead of waiting until tax season. This provides valuable cash flow support throughout the year.

To receive these payments:

~File your taxes on time
~Tick the box requesting advance payments on your return (or apply online through CRA MyAccount)

Maximizing the Canada Workers Benefit: Strategic Tips

Even though the CWB is automatically calculated when you file your return, there are several ways to optimize how much you receive.

Optimize Your Earned Income Level

CWB is based on earned income, so if you’re slightly below the threshold to qualify (typically ~$3,000), it may be beneficial to take on additional work to increase your income.

Example: A part-time worker earning $2,800 annually might not qualify for CWB. By increasing income to $3,200 through freelance work or extra shifts, they become eligible for the benefit.

Claim the Disability Supplement

If you or your spouse/common-law partner qualify for the Disability Tax Credit (DTC), make sure to apply for it through Form T2201 and claim the CWB disability supplement.

This can add up to $784 extra to your refund, per eligible individual.

Coordinate With Spouse/Common-Law Partner

If both you and your partner work and earn income, your family CWB amount will be calculated together. Sometimes, it’s beneficial for one spouse to report more of the earned income to remain below the phase-out threshold for maximum benefit.

Tip: If one partner is self-employed, consider income splitting strategies (if legally allowed) to balance income between partners

File Your Taxes On Time — Every Year

Many low-income Canadians miss out on CWB simply because they do not file a return. The CRA cannot issue the CWB — or any refundable credit — without a filed tax return.

Encourage students, part-time workers, and seniors with part-time income to file even if they don’t owe tax.

Tip: If one partner is self-employed, consider income splitting strategies (if legally allowed) to balance income between partners

Apply for Advance Payments

Many Canadians prefer to get their credits throughout the year rather than waiting until tax season. Opting in to advance payments can improve cash flow — especially for gig workers or seasonal employees.

Keep Your Personal Information Up to Date

Changes to marital status, children, address, or disability status can impact your benefit eligibility. Use CRA’s MyAccount to update your profile regularly.

Other Refundable Credits to Combine with CWB

The CWB is just one of several refundable tax credits available to low- and modest-income Canadians. Coordinating these benefits can significantly boost your refund and monthly income.

GST/HST Credit

Paid quarterly

Based on net family income and number of children

Automatic if you file your return and qualify

Canada Child Benefit (CCB)

Tax-free monthly payment for families with children under 18

Based on family income, number of children, and age of children

Apply using Form RC66 or via birth registration

Climate Action Incentive Payment (CAIP)

Paid quarterly in provinces with federal carbon pricing (e.g., Alberta, Ontario, Saskatchewan)

Available to individuals and families

No separate application just file your tax return

Provincial Supplements

Many provinces have additional refundable credits that work alongside the CWB:
Province Common Supplements
Ontario Ontario Trillium Benefit (includes sales & property tax credits)
Quebec Work Premium (Prime au travail)
Alberta Alberta Child and Family Benefit (ACFB)
BC BC Climate Action Tax Credit, BC Family Benefit

Who Should Be Claiming These Credits?

These benefits are especially relevant for:

Minimum wage earners

Part-time and gig workers

People transitioning off social assistance

Immigrants and newcomers with Canadian work income

People with disabilities in the workforce

Final Thoughts: Don’t Leave Money on the Table

The Canada Workers Benefit and related refundable tax credits offer real financial relief for low- and modest-income Canadians but millions go unclaimed each year due to misunderstanding eligibility, not filing returns, or missing supplemental benefits.

As tax professionals, we can help clients:

Understand their eligibility

File accurately and on time

Maximize every available credit

Plan their income for long-term tax efficiency

‍ Need Help Maximizing Your Credits?

Whether you’re self-employed, working part-time, or just starting out in Canada, our team can help ensure you receive every dollar you’re entitled to.
Contact Multani Professional Tax Services, Professional Corporation today to schedule a tax review or file your return with confidence.

Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Please consult a tax professional for guidance specific to your situation.

Photo by Annie Spratt on Unsplash