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Working Income Tax Benefit

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Filing Your Return
Disabilities -> Working Income Tax Benefit

Line 453 Working Income Tax Benefit

Income Tax Act s. 122.7

The working income tax benefit (WITB) is a federal refundable tax credit which has been available since 2007, for low-income individuals or families with working income over $3,000 (base amount for most provinces and territories).  The calculations for Alberta, BC, Quebec, and Nunavut differ from the amounts for other provinces and territories.  See the links below for tables of WITB factors.

The WITB is calculated on Schedule 6 of the income tax return, and is then entered on line 453 on page 4 of the tax return.

Summary of amounts for WITB

We have compiled tables which summarize all of the amounts related to the calculation of the WITB, including base amounts of working income, percentages used in the calculation, maximum WITB benefit, and income amounts above which the WITB is not available.

The tables for each year are initially estimated using indexation factors, and are updated (usually rounding differences) when the factors are available on the Canada Revenue Agency (CRA) website.  It is noted on the page when the factors have been confirmed to CRA.

2014 amounts - all provinces and territories except Quebec

2014 amounts - Quebec

2013 amounts - all provinces and territories except Quebec

2013 amounts - Quebec

2012 amounts - all provinces and territories except Quebec

2012 amounts - Quebec

2011 amounts - all provinces and territories except Quebec

2011 amounts - Quebec

2010 amounts - all provinces and territories except Quebec

2010 amounts - Quebec

2009 amounts - all provinces and territories except Quebec

2009 amounts - Quebec

2008 amounts

2007 amounts

For the CRA information on the working income tax benefit, and to get Schedule 6 on which it is calculated, see the CRA web page Line 453 - Working income tax benefit.

The Canadian Tax Calculator includes a calculation of the WITB, but it requires you to indicate whether or not you are eligible to receive the WITB.  If you indicate that you qualify, the calculator will determine the amount you will receive, if any, based on your income.  Read the following information to determine the correct answer to that question.

The following people qualify for the WITB, depending on income, unless they fit the description of an ineligible individual:

bullet single individual 19 years of age or older at the end of the year:
bullet resident in Canada throughout the year, and
bullet not enrolled as a full-time student for more than 13 weeks in the year
bullet individual under 19 years of age at the end of the year:
bullet resident in Canada throughout the year, and
bullet living with a spouse or common-law partner at the end of the year, and
bullet not enrolled as a full-time student for more than 13 weeks in the year
bullet single parent family, including parent under 19 years of age:
bullet resident in Canada throughout the year, and
bullet primary caregiver of a dependant child (under 19 at end of year) in Canada at the end of the year (note that the dependant child cannot be claimed by more than one person).
bullet couple:
bullet with no dependent children who are under 19 at end of year and residing with them:
bullet both residents of Canada throughout the year, and
bullet not enrolled as full-time students for more than 13 weeks in the year
bullet if one spouse is enrolled as a full-time student for more than 13 weeks in the year, then the non-student spouse is eligible for the WITB as a single individual.
bullet with dependent children who are under 19 at the end of the year, and residing with them:
bullet both residents of Canada throughout the year
bullet if one spouse is not resident of Canada throughout the year, the resident spouse may be eligible for the WITB as a single individual or parent if the applicable eligibility criteria are met.

An ineligible individual is an individual:
bullet who is an employee of the government of a country other than Canada, or a member of the employee's family;
bullet who, unless they have an eligible dependent, was enrolled as a full-time student for more than 13 weeks in the year at a designated educational institution (this would be a program for which the education amount tax credit is available); or
bullet who was confined to a prison or similar institution for a period of at least 90 days during the taxation year

Working income includes:
bullet income from office or employment (includes director's fees)
bullet taxable income from scholarships and research grants
bullet income from a business carried on by the individual, excluding losses

Adjusted net income

Adjusted net income is the individual's net income from line 236 of the tax return, less any Universal Child Care Benefits (UCCB).

Amount of WITB for 2009

Maximum refundable tax amount from WITB for all provinces and territories except Alberta, BC, Nunavut and Québec:

bullet $925 per year for a single individual
bullet $1,680 per year for an individual with an eligible spouse or eligible dependant

The WITB can only be claimed by one spouse.

The WITB is 25% of working income over $3,000 (base amount), to the above limits, but is then reduced by:

bullet for a single person with no dependants, 15% of the amount, if any, by which the individual's adjusted net income for the year exceeds $10,500 (adjusted net income base amount)
bullet for an individual with an eligible spouse or eligible dependant, 15% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, the eligible spouse, exceeds $14,500.

 

For 2009, the maximum WITB tax refund would be reached in most provinces/territories

bullet for a single person, at $6,700 or more of working income, and $10,500 or less of adjusted net income
bullet for an individual with an eligible spouse or eligible dependant, at $9,720 of combined working income, and $14,500 or less of combined (individual and spouse) adjusted net income.

For 2009, the WITB will be reduced to zero in most provinces/territories

bullet for a single person with $16,667 or more of adjusted net income
bullet for an individual with an eligible spouse or eligible dependant, with $25,700 or more of combined (individual and spouse) adjusted net income

WITB Disability Supplement

The WITB will include an additional disability supplement for each individual (other than a dependant) who is eligible for the disability tax credit (DTC).  The calculation differs for BC, Québec, and Nunavut.  See the table below for a summary of the amounts used in each province/territory.

The maximum WITB disability supplement was $427 per year for 2009.

The WITB disability supplement can only be claimed by one spouse.

The WITB disability supplement is 25% of working income over $1,150 (base amount), to a maximum of $250, but is reduced by:

bullet for a single person with no dependants, 15% of the amount, if any, by which the individual's adjusted net income for the year exceeds $16,667; or
bullet for an individual with an eligible spouse or eligible dependant, 15% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, the eligible spouse, exceeds $25,700; or
bullet for an individual with an eligible spouse who is also entitled to the disability tax credit, 7.5% of the amount, if any, by which the total of the adjusted net incomes of the individual and spouse exceeds $25,700.

See above tables for the factors for each year.

See also - links to all information on TaxTips.ca related to persons with disabilities.

Prepayment

Individuals and families who are eligible for the WITB can apply to CRA for a prepayment of one-half of their estimated WITB, as long as the estimated WITB is at least $200 for the year.  Evidence must be provided of expected earned income and proof of residency in Canada.  Prepayments will be made as part of the Goods and Services Tax Credit (GSTC) payment cycle.  For more information see the CRA web page WITB:  Application and Eligibility.

Eligible individuals and families can apply for the prepayment on their tax return, or by using the CRA form RC201 WITB Advance Payment.

A recipient of a prepayment must file a tax return for the year in which the prepayment is received.  If a prepayment becomes repayable to the government, interest will be charged in the same manner as interest on underpayments of income tax.  If a prepayment has been made for a taxation year, no prepayment will be made for a subsequent tax year until the tax return for the earlier year is filed.

 

Revised: December 18, 2014

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