Canada Workers Benefit (CWB): Complete Guide

2024 Maximum Benefits

Eligibility Requirements

To qualify for the CWB, you must:

• Be a Canadian resident throughout the year
• Be 19 years old or older on December 31, OR have a spouse/common-law partner, OR be a parent living with your child
• Have working income (employment or self-employment)
• Not be a full-time student for more than 13 weeks (unless you have a dependant)
• Not be in prison for 90+ days during the year

Income Limits (2024)

For most provinces (excluding Alberta, Quebec, and Nunavut which have variations):

• Single: Net income under ~$33,000
• Family: Family net income under ~$43,000

How the CWB Is Calculated

Phase-In

The benefit increases as your working income rises:

• Single: 27% of working income over $3,000
• Family: 27% of working income over $3,000

Maximum Benefit

You receive the maximum when working income reaches:

• Single: Around $9,000
• Family: Around $13,000

Phase-Out

The benefit decreases as adjusted net income exceeds threshold:

• Single: Reduced by 15% of income over ~$23,000
• Family: Reduced by 15% of family income over ~$26,000

Disability Supplement

If you're approved for the Disability Tax Credit (DTC), you may also receive the CWB Disability Supplement:

• Maximum: $784 for 2024
• Both spouses can claim if both have DTC approval
• Same phase-in/phase-out structure as basic CWB

Example Calculations

Single Worker

Sarah earns $18,000 at her job and has net income of $18,000:

• Working income over $3,000: $15,000
• Phase-in: $15,000 × 27% = $4,050
• Capped at maximum: $1,518
• No phase-out yet (income under $23,000)
• CWB received: $1,518

Single Worker with Higher Income

James earns $28,000:

• Starts with maximum: $1,518
• Income over phase-out threshold: $28,000 - $23,000 = $5,000
• Phase-out: $5,000 × 15% = $750
• CWB received: $1,518 - $750 = $768

Advance Payments (ACWB)

You can receive up to 50% of your expected CWB in advance quarterly payments:

How to Apply

• Complete Schedule 6 with your tax return
• Check box for advance payments
• CRA calculates and sends payments throughout the year

Payment Schedule

• July: First advance payment
• October: Second payment
• January: Third payment

Provincial Variations

Some provinces have modified CWB programs:

Alberta

Higher thresholds but same maximum benefits.

Quebec

Quebec has its own program called the Work Premium (Prime au travail) instead of the CWB.

Nunavut

Modified thresholds reflecting higher cost of living.

Second Earner Exemption

For couples, the lower-earning spouse can exclude up to $14,000 of their working income when calculating the family's adjusted net income for the phase-out. This helps families where both spouses work.

How to Claim

1. Complete your tax return with all income reported
2. Fill out Schedule 6 (Canada Workers Benefit)
3. CRA automatically calculates your entitlement
4. Credit is applied to your refund or balance owing

CWB vs. Other Benefits

Impact on Other Credits

The CWB is separate from and doesn't reduce:

• GST/HST Credit
• Canada Child Benefit
• Provincial benefits

Interaction with EI

EI benefits count as income for phase-out purposes but not as "working income" for the phase-in calculation.

Common Questions

What counts as "working income"?

Employment income (before deductions), self-employment income, and certain taxable benefits. EI, pensions, and investment income do not count.

Can students claim CWB?

Only if enrolled full-time for 13 weeks or less during the year, or if you have an eligible dependant.

Do I need to apply?

No separate application—complete Schedule 6 with your tax return. CRA calculates automatically.

Tips to Maximize Your CWB

• File your taxes: You must file to receive the CWB
• Apply for DTC: Disability supplement adds significant value
• Consider advance payments: If income is stable and predictable
• Contribute to RRSP: Reduces adjusted net income, potentially increasing CWB