When I first arrived in Canada three years ago, tax season felt like navigating a labyrinth without a map. Among the many terms and programs I encountered, the Canada Workers Benefit (CWB) stood out as particularly important—yet confusing. After helping several fellow newcomers understand this benefit, I’ve realized how crucial this financial support can be for those establishing themselves in a new country, and how frequently it’s overlooked or misunderstood.
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If you’re new to Canada and working hard to build your life here, the CWB could put thousands of additional dollars in your pocket each year. This refundable tax credit was specifically designed to support low to moderate-income workers, making it especially valuable for newcomers who often start in entry-level positions while building their Canadian experience.
Let me guide you through what the CWB is, how it’s been enhanced, and most importantly, how you can access this benefit as a newcomer to Canada.
What Exactly Is the Canada Workers Benefit?
The Canada Workers Benefit is a refundable tax credit aimed at working individuals and families with low to moderate incomes. Being “refundable” means you can receive this benefit even if you don’t owe any income tax—a crucial feature for those with lower incomes.
Originally introduced as the Working Income Tax Benefit (WITB), it was rebranded and enhanced in 2019 as the Canada Workers Benefit. Then in 2021, the federal government announced further enhancements to make it more generous and accessible.
“When I first filed taxes in Canada, I had no idea this benefit existed,” shares Maria, a healthcare worker who moved from the Philippines in 2020. “It wasn’t until my second year when a coworker mentioned it that I realized I had missed out on over $1,200 my first year. Now I make sure to claim it every year—it helps tremendously with my son’s school expenses.”
The 2021 Enhancements: Making the Benefit More Accessible
The 2021 federal budget introduced significant improvements to the CWB that newcomers should be aware of:
Increased maximum benefit amounts: The maximum benefit rose to $1,395 for single individuals and to $2,403 for families, including single parents.
Higher income thresholds: The income level at which the benefit begins to phase out increased, meaning more workers now qualify.
Lower phase-out rate: The benefit now decreases more gradually as income rises, allowing recipients to keep more of the benefit as they earn more.
Secondary earner exemption: For couples, the lower-income spouse can exclude up to $14,000 of their income when calculating the CWB, which helps many dual-income families qualify.
Advanced payments option: Eligible individuals can now receive up to 50% of their estimated CWB in advance through quarterly payments rather than waiting for tax time.
These changes have made the CWB more valuable and accessible than ever before, particularly for newcomers who are building their careers and financial stability in Canada.
How the Advanced Payments Work: Cash When You Need It
One of the most significant improvements to the CWB is the Advanced CWB payment option. Rather than waiting until you file your tax return to receive the benefit, you can apply to receive up to half of your estimated benefit throughout the year.
“The advanced payments made a huge difference for me,” explains Jamal, who moved to Canada from Syria in 2019. “Starting out as a delivery driver, my budget was extremely tight. Getting those quarterly payments helped me cover immediate expenses like winter clothing and bus passes that I needed for work.”
How the Advanced Payments Are Calculated
If approved for advanced payments, you’ll receive up to 50% of your estimated annual CWB in quarterly installments (in July, October, January, and April). The amount is calculated based on:
- Your eligibility for the CWB in the previous tax year
- Your estimated income for the current year
- Your marital status and family situation
The remaining portion of your CWB (at least 50%) will still be calculated when you file your tax return for the year.
| Payment Period | Payment Month | Based On | Maximum Single Payment | Maximum Family Payment |
|---|---|---|---|---|
| July-September | July | Previous year’s tax return | $174.38 | $300.38 |
| October-December | October | Updated eligibility | $174.38 | $300.38 |
| January-March | January | Updated eligibility | $174.38 | $300.38 |
| April-June | April | Updated eligibility | $174.38 | $300.38 |
| Annual Total (50%) | $697.50 | $1,201.50 |
Remember, these advanced payments represent only half of the potential total benefit. You’ll need to file your tax return to receive the remainder and confirm your final eligibility.
Eligibility Requirements: Do You Qualify?
As a newcomer to Canada, understanding if you qualify for the CWB is essential. The basic requirements include:
Being a resident of Canada for tax purposes throughout the year
As a newcomer, you’re considered a resident from the date you arrived in Canada with the intention to establish significant residential ties
Being 19 years of age or older on December 31 (or living with a spouse/common-law partner or child)
Having “working income” (employment income, self-employment income, or certain taxable scholarships)
Having income below the maximum threshold
For 2023, the income must be below $32,244 for single individuals and $42,197 for families
Not being a full-time student for more than 13 weeks in the year (unless you have an eligible dependent)
“When I came as a student, I wasn’t eligible during my studies,” notes Aisha, who immigrated from Morocco. “But once I graduated and started working part-time while looking for a position in my field, the CWB made a big difference. Many of my classmates didn’t realize they might qualify during this transition period.”
Income Thresholds and Benefit Amounts
The amount of CWB you can receive depends on your income level and family situation. Here’s how it works for the 2023 tax year:
| Type | Income Where Benefit Starts | Income at Maximum Benefit | Maximum Benefit | Income Where Benefit Ends |
|---|---|---|---|---|
| Single individuals | $3,000 | $13,194 – $22,944 | $1,395 | $32,244 |
| Families | $3,000 | $13,194 – $26,177 | $2,403 | $42,197 |
The benefit increases as your income rises from $3,000 until you reach the “maximum benefit” income range. Then it remains at the maximum amount until your income reaches the phase-out threshold, after which it gradually decreases until reaching zero at the “benefit ends” income level.
Special Considerations for Newcomers to Canada
As a newcomer, there are some additional factors to consider when applying for the CWB:
1. Partial Year Residency
If you arrived in Canada partway through the year, your CWB is prorated based on the number of days you were a resident of Canada. For example, if you arrived on July 1, you’d be eligible for approximately 50% of the full annual benefit.
“I arrived in September and assumed I wouldn’t qualify for any benefits my first year,” shares Elena from Ukraine. “I was surprised to learn I could still claim a partial benefit for those four months. Every bit helped during that initial settlement period.”
2. Documentation and Proof of Income
As a newcomer, you may have both foreign and Canadian income to report. When calculating your eligibility for the CWB, only include income earned while you were a resident of Canada. You’ll need to:
- Report your worldwide income from the date you became a resident of Canada
- Have documentation of your employment or self-employment income
- File a tax return, even if you have no tax owing
3. Provincial and Territorial Programs
Several provinces and territories offer their own workers’ benefits that supplement the federal CWB. As a newcomer, you should be aware of these additional supports:
Alberta: Alberta Workers’ Benefit
British Columbia: BC Family Benefit (formerly the BC Child Opportunity Benefit)
Nunavut: Nunavut Workers’ Benefit
Quebec: Work Premium
These provincial programs may have different eligibility criteria and application processes, so check with your provincial tax authority for details.
How to Apply for the Canada Workers Benefit
Applying for the CWB involves two potential processes: claiming it on your tax return and applying for advanced payments.
Claiming the CWB on Your Tax Return
The basic CWB is claimed when you file your income tax return. You’ll need to:
- Complete Schedule 6 (Canada Workers Benefit) with your tax return
- Calculate your benefit amount based on your income and family situation
- Transfer this amount to line 45300 of your return
Most tax preparation software will automatically calculate your eligibility for the CWB and include it in your return, but it’s always good to understand how it works.
“I was intimidated by the tax filing process my first year,” admits Carlos from Brazil. “I used a free tax clinic specifically for newcomers, and they made sure I received the CWB. Now I use tax software, but I always double-check that the CWB section is completed.”
Applying for Advanced CWB Payments
If you want to receive advanced payments, you need to submit an additional application:
- Complete Form RC201 (Canada Workers Benefit Advance Payments Application)
- Submit the form to the Canada Revenue Agency (CRA)
- If approved, you’ll begin receiving quarterly payments
To qualify for advanced payments, you must have received the CWB in the previous tax year and expect your situation to remain relatively similar.
Common Mistakes Newcomers Make With the CWB
In my experience helping fellow newcomers with tax matters, I’ve noticed several common mistakes regarding the CWB:
Not filing a tax return at all Many newcomers don’t realize they should file a return even if they have no taxes owing, causing them to miss out on benefits like the CWB.
Misunderstanding residency status Confusion about when you become a tax resident of Canada can lead to incorrectly calculating your eligible period for the CWB.
Overlooking the advanced payment option Many don’t realize they can get a portion of their benefit throughout the year rather than waiting for tax time.
Forgetting to report changes If your income or family situation changes significantly after applying for advanced payments, you need to notify the CRA to avoid potential repayments later.
Not keeping proper income records Especially for those with self-employment or gig work, inadequate record-keeping can make it difficult to properly claim the CWB.
“When I started driving for a food delivery app, I didn’t track my expenses properly,” shares Dev from India. “I later learned this affected both my income calculation and my CWB amount. Now I keep meticulous records of all work-related expenses.”
The Impact of the CWB on Newcomers’ Financial Stability
For many newcomers, the CWB provides crucial support during the challenging initial years of establishing themselves in Canada. The benefit can help with:
Covering essential living expenses during periods of lower income
Reducing reliance on credit during employment transitions
Supporting further education or training to improve employment prospects
Building emergency savings for financial resilience
Investing in necessary work equipment or transportation
“The CWB helped me afford reliable transportation to my night shift job when public transit wasn’t available,” explains Wei from China. “Without it, I might have had to quit that position, which eventually led to a supervisory role. It was a small boost that made a big difference in my career trajectory.”
Frequently Asked Questions
Q: Can I receive the CWB if I’m on a work permit?
A: Yes, if you’re considered a resident of Canada for tax purposes, which typically includes people on work permits who live routinely in Canada.
Q: Does receiving government assistance affect my eligibility for the CWB?
A: Most social assistance payments aren’t considered “working income” for CWB purposes, but they do count toward your total income, which could affect the amount of CWB you receive.
Q: What if my income changes after I apply for advanced payments?
A: If your income increases significantly or your family situation changes, contact the CRA to adjust your advanced payments to avoid having to repay benefits later.
Q: Can international students claim the CWB?
A: Generally, full-time students aren’t eligible unless they have an eligible dependent. Part-time international students who work and meet other criteria may qualify.
Q: How does the CWB interact with other benefits like the GST/HST credit?
A: The CWB doesn’t directly affect your eligibility for other benefits, but since it increases your after-tax income, it provides additional financial support alongside other benefits.
Future Changes to the CWB
The government continues to evaluate and enhance the CWB program. While specific future changes aren’t confirmed, the trend has been toward making the benefit more generous and accessible. Newcomers should stay informed about potential enhancements through:
The CRA website and publications
Settlement agency resources
Annual budget announcements
Tax preparation resources focused on newcomers
The CWB represents an important element of Canada’s support system for workers with modest incomes. As a newcomer establishing yourself in this country, taking full advantage of this benefit can provide valuable financial support during your crucial early years in Canada.
By understanding how the CWB works, confirming your eligibility, and applying properly, you can ensure you don’t miss out on this significant benefit designed to reward work and support those building their lives and careers in Canada.
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