Disabilities -> Working Income Tax Benefit / Canada Workers Benefit
Line 453 Working Income Tax Benefit (WITB) - Refundable Tax Credit / Canada Workers Benefit
Income Tax Act s. 122.7
The 2018 federal budget proposes 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) 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. See tax packages for all years on the CRA website.
In an October 24, 2017 news release, in conjunction with the 2017 Fall Economic Statement, the Department of Finance announced that the Working Income Tax Benefit (WITB) will be further increased starting in 2019, coming into effect in that year as part of the enhancement of the Canada Pension Plan.
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 correcting minor rounding differences) when the WITB amounts are available from Canada Revenue Agency (CRA) the following November. 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 236 family net income, with adjustments related to UCCB and RDSP income, income earned/received on a reserve, and allowances received as an emergency volunteer.
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:
An ineligible individual is an individual:
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).
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, Quebec, and Nunavut. See the WITB tables by year for amounts used in each province/territory.
See also - links to all information on TaxTips.ca related to persons with disabilities.
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 16, 2018
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