Low-income households can find financial relief in the Canada Workers Benefit.

With inflation and rising costs of living, hard-working low-income Canadians can benefit from a monetary boost more than ever. The Canada Workers Benefit is a refundable tax credit that provides needed financial relief.

For those who qualify, there are two components to the Canada Workers Benefit that can be claimed when an income tax return is being filed: the basic amount and a disability supplement.

Basic Amount: Granted to eligible working individuals and families under a certain income level.

Disability Supplement: An additional amount given to low-income workers who qualify for the disability tax credit.

Continue reading to learn more about the Canada Workers Benefit and what eligible individuals and families can look forward to.

Eligibility factors and exceptions

To qualify for the basic amount, individuals or families must:

• Earn an income of at least $3,000 and below a certain amount (dependent on province or territory).
• Be a resident of Canada.
• Be at least 19 years old or live with a spouse/common-law partner (must be a Canadian resident) or their child.

Individuals do not qualify for the basic amount if they:

• Are full-time students that attend an educational institution for more than 13 weeks. The only exception is if they have an eligible dependent.
• Spent at least 90 days in a prison or similar institution during the year.
• Are an officer/servant of another country (example: diplomat) or are the family member or employee of one.

To qualify for the disability supplement, individuals or families must:

• Earn an income of at least $1,150 and below a certain amount (dependent on province or territory)
• Qualify for the Disability Tax Credit which has it’s own eligibility requirements and can be applied for by submitting a T2201 Disability Tax Credit Certificate form.

 

How much can eligible individuals and families receive

The amounts received vary greatly and are calculated on a case-by-case basis. In fact, the basic amount and disability supplement received is dependent on a few factors such as:

• Marital status
• Province or territory of residence
• Earned working income
• Adjusted family net income
• Eligible dependent
• Eligibility for the disability tax credit

Another detail to consider is that the amount received reduces after a certain adjusted net income threshold. Here are the maximum amounts that eligible recipients can expect to receive:

	Basic Amount	Disability Supplement
Single individuals	$1,428.00 Starts reducing after adjusted net income is more than $26,495	$737.00 Starts reducing after adjusted net income is more than $33,018
Families	$2,461.00 Starts reducing after adjusted net income is more than $26,805	$737.00 Starts reducing after adjusted net income is more than $43,210

Net income maximums by province and territory

A quick way to find out whether an individual or family may be eligible is by looking at their net income.

Those who earn less than these maximum net income levels may qualify for the Canada workers benefit:

	Canada (except Alberta, Quebec and Nunavut)	Quebec	Alberta	Nunavut
Family with children	$43,212.00	$35,912.95	$43,952.00	$58,932.00
Family without children	$43,212.00	$45,060.20	$43,952.00	$58,932.00
Single with children	$43,212.00	$21,488.47	$43,952.00	$58,932.00
Single without children	$33,212.00	$29,072.64	$33,093.00	$58,925.00

*See more at Canada.ca

Those who earn less than these maximum net income levels may qualify for the disability supplement:

	Canada (except Alberta, Quebec and Nunavut)	Quebec	Alberta	Nunavut
Family with children	$48,124.00	$39,613.15	$48,886.00	$65,757.00
Family without children	$48,124.00	$48,760.22	$48,886.00	$65,757.00
Single with children	$48,124.00	$25,188.67	$48,886.00	$65,757.00
Single without children	$37,932.00	$32,772.84	$38,007.00	$65,750.00

*See more at Canada.ca

How to claim

To claim the Canada Workers Benefit, eligible recipients need to submit the 5000-S6 Schedule 6 Canada workers benefit form when filing their taxes. Reminder: only one spouse or common-law partner can claim this credit since it is distributed on a family basis.

Those who wish to claim the disability supplement have a few things to keep in mind. If they have an eligible spouse and one of them is eligible for the disability tax credit, the one who does qualify should claim both the Canada Workers Benefit and the disability supplement. If both are eligible for the disability tax credit, only one person can claim the basic amount. However, both can claim the disability supplement but must submit two separate Schedule 6 forms.

Do you believe that you or your family might qualify for the Canada Workers Benefit and would like the additional help? Find an office near you to book an appointment with one of our H&R Block Tax Experts today.