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Line 45300 Canada Workers Benefit (CWB) - Refundable Tax Credit /
Formerly Working Income Tax Benefit (WITB)
Note: Before tax year 2019, line 45300 was line 453.
Income Tax Act s. 122.7
Automatic Advance Payments for the Canada Workers Benefit - started July 2023
The Canada Workers Benefit (CWB) is also a federal refundable tax credit, available for 2019 and subsequent years, for low-income individuals or families with working income over $3,000 (most provinces/territories). The CWB calculations differ for Alberta, Quebec and Nunavut. See the Tables of Amounts for CWB/WITB.
The Federal 2021 Budget provided enhancements to the CWB amounts. The amounts for all provinces and territories are provided in the CWB tables. The amounts for AB, NU and QC depend on provincial reconfiguration agreements, which have now been finalized.
As part of the budget, a "secondary earner exemption" was introduced, which is a special rule for individuals with an eligible spouse. This allows the lower-income spouse to exclude up to $14,000 of their working income in the computation of the couple's adjusted net income, for the calculation of the CWB phase-out.
See Canada Workers Benefit on the Budget 2021 website.
The CWB is calculated on Schedule 6 of the income tax return, and is then entered on line 45300 (line 453 prior to 2019) on page 4 of the tax return. See tax packages for all years on the CRA website.
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 45300 - Canada workers benefit.
Advance payments that have been received during the year are on tax slip RC210, and are recorded on line 41500 of the tax return.
If you have an eligible spouse, only one of you can claim the basic CWB. The person who received the CWB advance payment for the year must claim the basic CWB for the year.
If both spouses are eligible and one is eligible for the disability tax credit (DTC), that person should claim the basic CWB and the CWB disability supplement.
If both spouses are eligible and both are eligible for the DTC, only one spouse can claim the CWB, but each spouse must claim the CWB disability supplement on a separate Schedule 6.
The detailed calculators (links above) include a calculation of the CWB, but you are required to indicate whether or not you are eligible to receive the benefit. 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.
An eligible individual is an individual (other than an ineligible individual) who was resident in Canada throughout the taxation year, and who was, at the end of the taxation year
An ineligible individual is an individual:
An eligible dependant of an individual for a taxation year means a child of the individual who, at the end of the year,
Income of both spouses is included in family working income if both are eligible for CWB.
Family working income includes:
Adjusted net income is the individual's net income from line 23600 (line 236 prior to 2019) of the tax return, less any Universal Child Care Benefits (UCCB).
The benefit includes 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 (except after 2018), Quebec, and Nunavut. See the benefit tables by year for amounts used in each province/territory.
See also - links to all information on TaxTips.ca related to persons with disabilities.
The 2022 Fall Economic Statement announced that beginning in 2023:
As noted by the Parliamentary Budget Office on page 7 of the November 15, 2022 Fall Economic Statement 2022 Issues for Parliamentarians, "Not requiring repayment of federal benefits for ineligible individuals is a pronounced departure from the existing federal tax and transfer system."
CWB advance payments have now been replaced by automatic advance payments based on the prior year's tax return - see above.
Individuals and families who are eligible for the CWB can apply to CRA for a prepayment of one-half of their estimated benefit, as long as the estimated benefit 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 Canada Workers Benefit - Eligibility.
Eligible individuals and families can apply for the prepayment on their tax return, or by using the CRA form RC201 Canada Workers Benefit Advance Payment.
A recipient of a prepayment must file a tax return for the year in which the prepayment is received. The recipient will receive tax slip RC210 for the amount received. The amount from box 10 of the RC210 must be reported on line 41500 (line 415 prior to 2019) of the tax return.
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.
Advance payments of CWB are entered on Line 41500 of the tax return, and are thus added to net tax payable.
The 2018 federal budget brought in legislation to rename the WITB to the Canada Workers Benefit, and to enhance the benefit, effective for the 2019 taxation year. See the link below for a comparison of the 2019 Canada Workers Benefit vs the 2018 WITB.
The working income tax benefit (WITB) was a federal refundable tax credit which was been available from 2007 to 2018, 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 differed from the amounts for other provinces and territories.
The tables summarize all of the amounts related to the calculation of the CWB and WITB, including base amounts of working income, percentages used in the calculation, maximum benefit, and income amounts above which the benefit is not available.
The tables for each year are initially estimated using indexation factors, and are updated (usually correcting minor rounding differences) when the benefit amounts are available from Canada Revenue Agency (CRA) when tax forms for that year are available. It is noted on the page when the factors have been confirmed to CRA.
Note that "net income" and "adjusted net income" refer to line 23600 (line 236 prior to 2019) family net income, with adjustments related to UCCB and RDSP income, income earned/received on a reserve, and allowances received as an emergency volunteer.
Canada Workers Benefit (CWB) Amounts
Working Income Tax Benefit (WITB) Amounts
Revised: October 26, 2023
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