How to Apply for the Canada Workers Benefit (CWB)
By WelcomeAide Team
The Canada Workers Benefit (CWB) is a refundable tax credit designed to help low-income individuals and families who are working. If you are a newcomer to Canada and earning a modest income, the CWB can provide you with significant financial support — potentially hundreds or even thousands of dollars per year. This guide will walk you through everything you need to know about the CWB, including eligibility, how to apply, and how to receive advance payments.
What Is the Canada Workers Benefit?
The Canada Workers Benefit (CWB) is a refundable tax credit that supplements the earnings of low-income workers. It was formerly known as the Working Income Tax Benefit (WITB) and was enhanced and renamed in 2019. The CWB has two components:
- Basic CWB: Available to all eligible low-income workers.
- CWB Disability Supplement: An additional amount available to eligible individuals who qualify for the Disability Tax Credit.
The benefit is "refundable," which means that even if you owe no taxes, you can still receive the full amount as a payment from the Canada Revenue Agency (CRA). This makes it particularly valuable for newcomers who may be working part-time or earning entry-level wages as they establish themselves in Canada.
Who Is Eligible for the CWB?
To qualify for the Canada Workers Benefit, you must meet all of the following conditions:
- You earned working income during the tax year. This includes employment income (from a T4 slip) and self-employment income. EI benefits, pensions, and investment income do not count as working income for CWB purposes.
- You were a resident of Canada for income tax purposes throughout the year. As a newcomer, you become a resident for tax purposes once you establish significant residential ties to Canada (such as having a home, spouse, or dependants in Canada).
- You were 19 years of age or older on December 31 of the tax year. If you are under 19, you can still qualify if you have a spouse or common-law partner, or if you are the parent of a child you live with.
- You were not a full-time student at a designated educational institution for more than 13 weeks in the year — unless you had an eligible dependant at the end of the year.
- You were not confined to a prison or similar institution for 90 days or more during the year.
- Your net income was below the phase-out threshold. For 2025, the income thresholds are approximately $33,015 for single individuals and $43,212 for families. These amounts are adjusted each year for inflation.
How Much Can You Receive?
The amount of your CWB depends on your working income, your net income, your family situation, and the province or territory where you reside. For the 2025 tax year, the maximum basic CWB amounts are approximately:
See also: Employment Insurance (EI) Benefits Guide
- Single individuals without dependants: up to $1,518
- Families (couples or single parents with dependants): up to $2,616
The CWB disability supplement provides an additional amount of up to $737 for eligible individuals.
The benefit starts to phase in once your working income exceeds approximately $3,000 (for single individuals) or $3,000 (for families), and begins to phase out once your adjusted net income exceeds approximately $23,495 (for singles) or $26,805 (for families). The exact amounts may vary by province, as some provinces have entered into agreements with the federal government to modify the CWB for their residents.
How to Apply for the CWB
Applying for the CWB is straightforward — you claim it when you file your annual income tax return. Here are the steps:
See also: First-Year Tax Filing Guide
- File your income tax return. You must file a tax return to receive the CWB, even if you have no taxes owing. This is important for newcomers to understand — many benefits in Canada are tied to your tax return.
- Complete Schedule 6. When filing your tax return, you need to complete Schedule 6 — "Canada Workers Benefit." This schedule calculates your CWB based on your working income, net income, and family situation.
- Enter the result on your tax return. The calculated CWB amount from Schedule 6 is entered on line 45300 of your tax return.
- If using tax software: Most tax preparation software (such as Wealthsimple Tax, TurboTax, or H&R Block) will automatically calculate your CWB eligibility and complete Schedule 6 for you based on the information you enter.
For the official Schedule 6 form and instructions, visit the CRA Schedule 6 page.
CWB Advance Payments
One of the most helpful features of the CWB is the option to receive advance payments. Instead of waiting until you file your tax return to receive the full benefit, you can apply to receive up to 50% of your estimated CWB in quarterly advance payments throughout the year.
To apply for advance payments:
- Complete Form RC201 — Canada Workers Benefit Advance Payments Application.
- Submit the form to the CRA. You can file it electronically through your CRA My Account or mail it to the CRA.
- If approved, you will receive quarterly payments (usually in January, April, July, and October).
Advance payments can be very helpful for newcomers living on a tight budget, as they provide regular cash flow throughout the year rather than a lump sum at tax time. However, be aware that if your circumstances change (such as a significant increase in income), you may need to repay some of the advance payments when you file your tax return.
See also: CRA My Account Setup Guide
Provincial and Territorial Variations
Some provinces and territories have entered into agreements with the federal government to modify the CWB for their residents. This means that the income thresholds, benefit amounts, and phase-out rates may differ depending on where you live. Provinces with their own variations include Alberta, Quebec, and Nunavut. When you complete Schedule 6, the form will guide you to the correct calculations based on your province of residence.
For Quebec residents, note that Quebec administers its own version of the CWB through Revenu Québec. If you live in Quebec, you will claim the benefit on your Quebec provincial tax return instead.
CWB and Other Benefits
The CWB interacts with several other Canadian benefits that newcomers should be aware of:
- GST/HST Credit: The CWB does not affect your GST/HST credit. You can receive both benefits simultaneously.
- Canada Child Benefit (CCB): The CWB does not reduce your CCB. However, both benefits are calculated based on your net income, so any changes to your income will affect both.
- Provincial Benefits: Many provinces offer additional benefits for low-income workers. Check with your provincial government for details.
- Social Assistance: If you receive social assistance (welfare), the CWB may affect your provincial social assistance payments. Check with your provincial or territorial social services office.
Tips for Newcomers Applying for the CWB
- Always file your taxes: Even if your income is very low, file your tax return. The CWB is just one of many benefits that require a filed tax return.
- File on time: Late filing can delay your CWB payment and any advance payments you may have applied for.
- Keep records of your working income: Make sure you have all your T4 slips and any records of self-employment income before filing.
- Update your information with the CRA: If you move, change your marital status, or have a change in the number of dependants, update your information with the CRA through My Account.
- Consider advance payments: If you are eligible and need regular cash flow, apply for CWB advance payments using Form RC201.
- Use free tax filing services: If you are unsure how to file your taxes, visit a free tax clinic through the Community Volunteer Income Tax Program (CVITP).
Key Resources
- Canada Workers Benefit — CRA
- Schedule 6 — Canada Workers Benefit
- Form RC201 — CWB Advance Payments Application
- Community Volunteer Income Tax Program (CVITP)
Final Thoughts
The Canada Workers Benefit is one of the most valuable financial supports available to low-income working newcomers in Canada. It is designed to reward you for working and to help bridge the gap between a low income and a living wage. By filing your tax return and completing Schedule 6, you can access this benefit and potentially receive over a thousand dollars in additional support. If you are a newcomer earning a modest income, the CWB is a benefit you cannot afford to miss.
See also: How to Get Your SIN Number in Canada
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