If you work in Canada and your income is low or limited, then this information can be very beneficial for you.
The Canada Workers Benefit (CWB), run by the Government of Canada, is a tax credit program that provides financial assistance to those who work hard but whose income is not enough to meet their needs.
In 2025, eligible people can get a tax refund of up to $1,428 under this scheme. Let’s understand it in detail and in simple language.
What is the Canada Workers Benefit (CWB)?
The Canada Workers Benefit is a refundable tax credit, which means that this amount is returned to you at the time of tax return, whether you have paid that much tax or not. Its main objective is:
- To help low-income people
- To motivate them to work
- To help meet the basic needs of life like rent, ration, bills, etc.
This scheme is divided into two parts:
- Basic amount: For all eligible people
- Disability supplement: For those who apply with proof of disability
Who can get the full payment of $1,428?
If you meet certain conditions, you can get up to $1,428 under this scheme in 2025. You must meet the following eligibility criteria:
- You must be a resident of Canada all year round
- Your income must be within a certain limit
- You must not be a full-time student (unless you are a dependent)
- You must not have been in prison or an institution for more than 90 days
Household status also matters
- If you live alone, your income must be less than $24,000 to receive the full payment
- If you are a family (couple or single parent), you can earn a little more and still qualify
Estimated income limits – for 2025:
| Household type | Income to receive the full amount | Income limits when payments stop |
|---|---|---|
| Single person | Less than $24,500 | About $33,000 |
| Family/couple | Less than $26,800 | About $55,000 |
Note: These figures are estimates and are revised by the CRA each year to account for inflation and economic conditions.
How and when will you get the payment?
1. Claim at the time of tax return
To avail the benefit of CWB, you must file your tax return every year. When you file your tax, CRA calculates this credit based on the information provided by you.
2. Advance payment option
If you want, you can take half the amount of this scheme in advance 4 times a year. That is, 50% of $1,428 – about $714 can be given to you in installments. This gives some relief in your month-to-month expenses.
Example: Suppose you have to pay rent or deposit school fees of children – in such a situation advance CWB can be helpful.
To facilitate payment:
- File tax on time
- Keep your bank details and personal information updated in CRA My Account
Read more: Centrelink $1990 Relief Payment in July 2025, Check Eligibility and Payment Dates
Why is this scheme necessary?
In today’s time when inflation is rising rapidly and wages are not increasing much, Canada Workers Benefit has become a kind of economic safety net. It especially helps those:
- Those who earn the minimum wage or a little more
- Those who do not have a full-time job but are working
- Those who run a family but have limited income
Example: Suppose a single mother works part-time and has an annual income of $23,000. Then she can be fully eligible for CWB and get relief of up to $1,428 at the end of the year.
How to apply? (Step-by-step process)
- Fill the Tax Return Form 2025 (Form T1)
- Complete Schedule 6 – Working Income Tax Benefit Schedule from the CRA website
- If you want to receive advance payment, apply to CRA in advance (before July)
Important: If you are in a disability situation, also attach proof of Disability Tax Credit
Are further changes possible?
Many amendments were made to the CWB in 2022, and it is being updated every year. But there is also a possibility of reduction in it after 2026, if new laws are not passed in Parliament. Therefore, it is important to file taxes on time and take advantage of the scheme.
Frequently Asked Questions (FAQs)
Q1: Is this scheme available to everyone working?
No, only to those whose income is within the limit set by the CRA.
Q2: Is it refundable?
Yes, it is a fully refundable tax credit. Even if you have not paid much tax, you can still get this money as a refund.
Q3: How to get advance payment?
You can apply for advance CWB through CRA’s website or My CRA Account.
Q4: Do students get this benefit?
If you are a full-time student and you do not have any dependents, then you are not eligible for this scheme.
Conclusion
Canada Workers Benefit is a great support for those who are working even in difficulty. This scheme not only gives them tax exemption, but also helps in the form of direct money.
If you live in Canada and your income is low, then this scheme can prove to be very beneficial for you. Just file tax returns on time, keep the necessary information updated, and keep getting the latest updates from the CRA website from time to time.
