Canada Workers Benefit: What it is, who can get it and how to apply

Government support programs can help many people who work hard but still struggle to pay their bills. The Canada Workers Benefit (CWB) is one of those programs. It puts extra money in the hands of low-income workers who need it most.

This article explains in simple terms what the Canada Workers Benefit is, who can get it, how to apply, and how much you might receive. If you’re working and earning a low income, this guide will help you understand your rights and opportunities.

What is the Canada Workers Benefit and who can apply?

The Canada Workers Benefit is a refundable tax credit from the Canada Revenue Agency (CRA). It gives money to people who earn a low income but are still working. It was created to make work more rewarding and help with the cost of living.

To qualify, you must meet a few conditions:

• You must be at least 19 years old by the end of the tax year or live with a spouse or child.
• You must earn income from a job or self-employment.
• Your income must be below a certain limit (the limit changes by province and family situation).
• You must file a tax return.

The CWB has two parts:

1. A basic amount for low-income workers.
2. A disability supplement if you have an approved disability tax credit.

How much can you receive?

The amount you can get depends on your income, marital status, and whether you qualify for the disability supplement. Here’s a simplified table for the 2024 tax year:

Note: The exact amount you receive depends on your working income and how much you earn in total. The benefit starts to reduce when your income goes above a certain level.

Each province and territory also has its own income limits and calculations.

How to apply for the Canada Workers Benefit

You don’t need to fill out a separate form to apply for the Canada Workers Benefit. You apply when you file your tax return.

Here’s how to do it:

1. Check your eligibility: Use the CRA’s eligibility tool or ask a tax advisor.
2. File your taxes on time: You must fill out Schedule 6 in your tax return.
3. Use software or do it by hand: Most tax software will guide you through the process, but you can also fill it manually.

If you’re eligible, the CRA will calculate your benefit for you.

Applying for advance payments

You can also get up to 50% of the benefit paid in advance throughout the year instead of waiting for tax season. These payments arrive quarterly, usually in July, October, January, and April.

To get advance payments, fill out Form RC201 and submit it to the CRA. You can find the form online or request it by phone.

When and how do you get paid?

If you apply through your tax return, your payment usually comes as a tax refund. If you choose direct deposit, the money goes into your account faster.

If you signed up for advance payments, they are paid out every three months. You can track your payments by logging into your CRA My Account.

Payments may be delayed if your tax return is filed late or if the CRA needs more information from you.

Benefits and drawbacks of the Canada Workers Benefit

Like most government programs, the Canada Workers Benefit has both positive and negative sides.

On the positive side, the benefit helps people who are working but still earn a low income. It offers financial support that can ease daily expenses and make life a bit more manageable. Another strong point is the option to receive advance payments, which means you don’t have to wait until tax season to get help — you can receive money throughout the year. For individuals with disabilities, the program also includes a special supplement, providing extra support. And overall, the CWB encourages people to stay in the workforce, which can lead to more stability and independence over time.

However, there are also drawbacks to consider. First, you must file your taxes in order to receive the benefit, which not everyone does — especially if their income is very low. The program isn’t automatic, so many people miss out simply because they don’t know they’re eligible or forget to claim it. The amount you receive also depends heavily on your income and where you live, since each province calculates it differently. Lastly, while the benefit helps, it may not fully keep up with rising living costs, especially in cities where housing, food, and transport are very expensive.

In short, the Canada Workers Benefit is a helpful tool, but it’s most effective when used as part of a larger plan to manage your money wisely.

Common mistakes and how to avoid them

Many people miss out on the CWB because they don’t know how to claim it. Here are some common errors:

• Not filing taxes: Even if your income is low, you must file to get the benefit.
• Missing Schedule 6: This part of the tax return is needed to calculate your CWB.
• Not applying for advance payments: These can help if you need money throughout the year.
• Forgetting the disability supplement: If you qualify, this can add hundreds to your benefit.

Need help? Resources like TurboTax Canada or a local community tax clinic can guide you.

Can the Canada Workers Benefit help build credit?

Yes – indirectly.

Getting the CWB means extra income, and if you use it wisely, it can help you stay on top of bills and avoid debt. That can improve your credit score over time.

To learn more about building credit in Canada, especially if you’re starting from zero, read this guide:
👉 How to build credit from scratch

Remember, credit isn’t just about credit cards. Paying your bills on time, avoiding loans you can’t repay, and keeping a stable income all matter too.

Final tips for getting the most from your benefits

Here are a few ways to get the most out of the Canada Workers Benefit:

• File your taxes every year, on time.
• Sign up for advance payments if you need help spread throughout the year.
• Use the CRA’s online tools to check your eligibility and track your payments.
• Look into other credits you might qualify for, like the GST/HST credit or provincial support.
• Budget your refund so it lasts longer – maybe use part of it to pay bills or build savings.

These small steps can make a big difference in your financial life.

The Canada Workers Benefit is there to support people who work hard but earn less. It’s one of the easiest ways to get extra help through your tax return, especially if you’re struggling with rising costs.

Don’t leave money on the table.
Check if you qualify, file your taxes, and apply for your benefit today. The process is simpler than you might think, and it can help you move toward better financial stability.