If you are someone who qualifies for the Canada Workers ‘ Benefit, you can expect to receive the first of your new quarterly payments as early as this week.
On Monday, Prime Minister Justin Trudeau confirmed that the recently expanded and improved CSIBB will begin to be distributed on Friday.
It’s the first of the new quarterly payments, which will be distributed in advance to ensure eligible people can get their benefits earlier than before.
As of July 2023, single skilled workers can receive up to $ 1,428 as a quarterly base payment, while families can receive up to $ 2,461 depending on their income.
Canadian workers who qualify will also be able to receive up to $ 737 as a disability supplement, in addition to the basic payment of C8B.
With the new advance payments set to arrive in bank accounts before the end of the week, here’s everything you need to know about Canada Workers Benefit, exactly how much you can get and how to claim the money.
What Is The Benefit Of Canadian Workers?
Canada’s workers ‘ benefits, also known as C8B, is a refundable tax credit that aims to help individuals and families who are working but earning low incomes.
The federal benefit has two parts, a basic amount and a disability supplement. Some individuals may qualify for both.
As of July 2023, C8B will automatically provide advance payments to beneficiaries based on their eligibility in the 2022 tax year.
Previously, the Canada Revenue Agency determined the C8B qualification based on tax returns, which meant that eligible people would have to wait until the year after they were qualified to claim the benefit for that year (because the tax return deadline in Canada is always in April next year).
The change means that those who were eligible for CSIBB in 2022 will not have to wait until the 2023 tax filing season (in 2024) to be paid. Instead, the CRA will use the information from 2022 to offer three upfront payments – equal to 50% of CSIBB – in 2023, ahead of the tax return deadline in 2024.
These payments are referred to as advanced Canada, or AC.
The government says the change will ” put more money in the pockets of workers to help cope with the rising cost of living.”
Anyone who has received C8B in 2022 will receive advance payments automatically, so there is no need to apply.
Those eligible to take the disability supplement will also receive 50% of their disability supplement amount alongside their advanced basic payments.
Who qualifies for the Canadian workers ‘ benefit?
To be eligible for the Canada Workers ‘ Benefit, you must be a year-round Canadian resident and must be at least 19 years old on December 31 of the year you apply (or live with your spouse or ordinary partner, or your child).
You must also earn a working income, although your net income must be below the net income level set for your specific province or territory.
Full-time students don’t qualify unless they have a qualified dependent, and you also can’t get C8B if you’ve been incarcerated for at least 90 days of the year.
Those who have a qualifying income and an approved form t2201 (Disability Tax Credit Certificate) on file with the CRA will also be able to claim the CANTANB disability supplement.
You can find the full eligibility requirements of C8B on the Government of Canada website.
How much can you earn through Canadian workers?
Exactly how much you can get through the Canada worker benefit varies, depending on factors like your income and the province or territory of your place of residence, as well as your marital status and whether you have qualified dependents.
The maximum basic amount of C8B that single individuals can receive in most provinces and territories is $ 1,428 as of July 2023. This figure gradually decreases if your adjusted net income is above $ 23,495.
If you earn over $ 33,015, no basic amount is paid.
When it comes to households, the maximum base amount of C8B is $ 2,461. This figure decreases if your adjusted household net income (AFNI) is above $ 26,805.
If your income is more than $ 43,212, no basic amount will be paid.
The maximum basic amount of C8B is different for residents of Quebec, Nunavut and Alberta.
The maximum amount for disability allowance is $ 737 for single individuals, with a gradual reduction for those earning over $ 33,018. No disability allowance is paid if your adjusted net income is more than $ 37,932.
The same maximum amount applies to households, with the figure gradually decreasing if your income is more than $ 43,210.
It is worth adding that no disability allowance is paid if one spouse is eligible for the disability tax credit and has an AFNI of more than $ 48,124, or if both spouses are eligible and have an AFNI of more than $ 53,037.
The maximum amount for the disability allowance will vary for residents of Quebec and Nunavut.
If you’re not sure what this means for you, you can use the government’s benefits calculator for children and family to estimate your advance payments. Keep in mind that you must provide information based on your situation as of December 31 last year.
How to claim the benefits of Canadian workers
There are two simple ways to claim the Canada worker benefit, according to the CRA website.
You can either file your taxes electronically and follow the instructions in your certified tax software, or fill out a paper return and File program worker benefit Form 6, Canada.
If you are looking for the disability supplement, fill out the same form again (through your tax registration software or on paper).
“If you have a qualified spouse and one of you is eligible for the disability tax credit, that person must claim both the basic amount and the disability allowance,” the CRA explains.
If you and your spouse are eligible for the disability tax credit, only one of you can claim the basic amount. However, you both need to request the disability allowance on a separate schedule 6 form.
It is not necessary to apply for advance payments, as the CRA will determine your eligibility when you file income tax and benefit returns. Instead, payments will be distributed automatically.
“To receive advanced payments, the CRA must receive income tax and benefit returns before the November 1st benefit period,” the CRA adds.
Those who believe they qualify for CANAIR are asked to wait 10 working days after the expected payment date before contacting the CRA for late or missed payments.
The cover image of this article was used for illustrative purposes only.
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