Working income tax benefit – Overview

Overview

The 2018 federal budget introduced the Canada workers benefit to strengthen and replace the working income tax benefit. For more information about this new, refundable tax credit, go to Introducing the Canada workers benefit.

The working income tax benefit (WITB) is a refundable tax credit that provides tax relief for eligible low-income individuals and families who are in the workforce. The WITB includes a disability supplement for individuals who have an approved Form T2201, Disability Tax Credit Certificate, on file with the CRA. If you do not have a Form T2201 on file, send your completed form to the CRA to see if you qualify for the disability supplement.

Eligibility

To be eligible for the working income tax benefit (WITB) you must be:

  • a resident of Canada for income tax purposes throughout the year
  • 19 years of age or older on December 31
    •  unless, on December 31, you have a spouse or common-law partner, or an eligible dependant*

You are not eligible for the WITB if:

  •  You are enrolled as a full-time student at a designated educational institution for more than 13 weeks in the year
    • unless, on December 31, you have an eligible dependant*
  • You are confined to a prison or similar institution for a period of 90 days or more in the year
  • You do not have to pay tax in Canada, because you are an officer or servant of another country, such as a diplomat, or you are a family member or employee of such person

Disability supplement

You may also be eligible for the disability supplement if all of the following apply:

*For WITB purposes, an eligible dependant is a child who:

  • lives with you
  • is under 19 years of age
  • is not eligible for the WITB

Related information

Apply

The 2018 federal budget introduced the Canada workers benefit to strengthen and replace the working income tax benefit. For more information about this new, refundable tax credit, go to Introducing the Canada workers benefit.

To apply for the working income tax benefit you must:

  1. Complete Schedule 6, Working Income Tax Benefit (available in your certified tax software and tax package)
    • To apply for the disability supplement, complete Step 3 in Schedule 6
  2. Enter on line 453 of your income tax and benefit return the amount from line 42 of Schedule 6
  3. Send (file) your return to the Canada Revenue Agency (CRA)
    • If you prepare your return on paper, include your completed Schedule 6, Working Income Tax Benefit, with your return

Request the advance payment

You can receive up to 50% of your benefit as an advance payment. To receive the advance payment of the Canada workers benefit (formerly the working income tax benefit) you must:

  1. Complete Form RC201, Canada Workers Benefit Payments Application
    • To apply for the disability supplement, complete Part 3 of Form RC201
  2. Mail your completed form to:
    Sudbury Tax Centre
    PO Box 20000, STN A
    Sudbury ON  P3A 5C1

We must receive your form no later than August 31. Applications for advance payments received after August 31 will not be processed. Your paper application should be processed within 11 weeks of the CRA receiving it. To receive the advance payments, you must apply every year.

Related information

How much you can expect to receive

The maximum payment you can expect to receive from the canada workers benefit (CWB) is dependent on the province you live in. The majority of Canadians will receive a payment up to the amounts listed below. However, the maximum CWB payment will vary for residents of Alberta, Nunavut and Quebec.

Maximum payment for the canada workers benefit (CWB) is:

  • $1,355 for single individuals
    The canada workers benefit (CWB) payment is gradually reduced when net income is more than $12,820. No CWB is paid when net income is more than $24,112.
  • $2,335 for families
    The CWB payment is gradually reduced when family net income is more than $17,025. No CWB is paid when the family net income is more than $36,484.

Maximum payment for the disability supplement is:

  • $700 for single individuals
    The CWB disability supplement is gradually reduced when net income is more than $24,111. No disability supplement is paid when net income is more than $29,945.
  • $700 for families
    The CWB disability supplement is gradually reduced when family net income is more than $36,483. No disability supplement is paid when the family net income is more than $42,317.

How the Canada Revenue Agency calculates your payment amount

The CWB is calculated using all of the following information:

  • marital status
  • province or territory of residence
  • working income
  • net income
  • eligible dependent(s)
  • eligibility for the disability supplement

You can calculate your CWB using the calculation sheet for the province or territory where you live, or you can get an estimate of your amount using the Child and family benefits calculator.

Related information

Advance payment dates

The working income tax benefit is a refundable tax credit that you can claim when you do your taxes.

Advance payment

You could receive up to half of your benefit in four separate payments with the advance payment. The payments are usually sent on the fifth day of the month in April, July, October, and January. If you do not receive a payment on the expected date, please wait 10 working days before contacting the Canada Revenue Agency.

To see your personal benefit payment information, go to My Account or the MyBenefits CRA mobile app. You can also subscribe to the benefit and credit payment dates reminders electronic mailing list.

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