How to Get $2,461 Workers Benefit in Canada? What are the Tax Planning Strategies?

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By Naomi Craft

To let Canadian workers keep up with the cost of living and sustain their livelihood, the government has proposed the Canadian Workers Benefit(CWB) scheme. It typically supports low-wage earners where the beneficiaries can get up to $2,461.

Learn about the essential details like “How to Apply for the Workers Benefit in Canada?”, “Eligibility Requirements”, etc, by reading the rest of the article.

What is a Workers Benefit?

A worker’s benefit is a governmental effort made towards assisting Canadian Low-income workers. It is a form of refundable tax credit support that helps reduce the tax owed which implies that the worker can get a refund if their credit is more than the owed tax. To let the worker keep up with the cost of living even with the rise of inflation the government makes sure to index these benefits based on inflation.

Eligibility Criteria to Gain Worker’s Benefit

To be eligible to apply for the Worker’s Benefit the candidate must satisfy the following conditions, as per which the candidate should:

  1. be a resident of Candana for one year.
  2. be either 19 years old or older as of December 31, or be living with their spouse or common-law partner or child.
  3. be making money while making an income below the threshold amount set for people falling under different sects as per the 2022 tax year:
CategoryCanada (excluding Alberta, Quebec, and Nunavut)QuebecNunavutAlberta
Family with children$43,212$35,912.95$58,932$43,952
Family without children$43,212$45,060.02$58,932$43,952
Single with children$43,212$21,488.47$58,932$43,952
Single without children$33,015$29,072.64$58,925$33,093

If the candidate complies with any of the following conditions then they shall become ineligible for the Canadian Worker’s Benefit:

  1. Being enrolled at a designated educational institution for more than 13 weeks as a full-time student. In case the person has an eligible dependant as of December 31st the condition no longer applies to them.
  2. Having to spend at least 90 days during the year in a confined space like a prison etc.
  3. Not being a Canadian taxpayer because of serving in an officer position or serving a different nation for example a diplomat.

The following conditions have to be met by the candidate’s dependent to make them considered as eligible spouse:

  1. Lives with the candidate as a spouse or common-law partner as of December 31st.
  2. Living as a resident of Canada throughout the year.

Common-law partner’s ineligibilities are the same as that of candidates applying for the Canadian Workers Benefit.

Conditions required to be fulfilled to become an eligible dependant are:

  1. being applying candidate’s spouse or common-law partner’s child.
  2. being under the age of 19 and living with the candidate until December 31st.
  3. not being eligible for the CWB.

Also Read- How to Check your Social Security Disability Status Online?

Basic Benefit Maximum Amount for Eligible Workers

The maximum amount provided under the Canadian Worker’s Benefit as per the category the person lies in are:

  1. For Individual workers: Eligible individual workers can get up to $1,428, in case of gross income of the person equalling more than $23,495. The person will become devoid of gaining the basic amount if their net income comes out to be more than $33,015.
  2. For Families: Families that satisfy all the basic conditions required to be eligible for the Canadian Workers Benefits can gain up to $26,805. Families whose net income exceeds more than $43,212 won’t be receiving any basic amount for the Canadian Workers Benefit.

How to Get $2,461 Workers Benefit in Canada?

Eligible candidates seeking to gain up to $2,461 are required to follow one of the following steps:

  1. Either file your tax return electronically by using certified tax software and following the instructions given within. or
  2. filing a paper tax return, by submitting a filled-out schedule-6, that is specifically designed for the Canadian Workers Benefit.
  3. To apply for the disability tax credit the candidate is required to claim the disability supplement on a separate Schedule 6. In the situation of both candidate and spouse applying for the disability tax only will be granted with it.
  4. To receive advanced payments no separate applications or documents are required to submit as the government will automatically assess the candidate’s eligibility and transfer amount as per it.

Advanced payments under the Canadian Worker’s Benefit will be sent out automatically. In this case, 50% of the Canadian worker’s benefit is provided along with the previous year’s tax returns. These payments are transferred in three installments by the CRA(Canadian Revenue Agency) generally in July, October, and January.

What are the Tax Planning Strategies

Strategies that are required to be taken into consideration before managing your taxes for the Canadian Workers Benefits are:

  1. Comprehending the effects that marriage can have on taxes.
  2. Make sure to balance investments for efficient taxes.
  3. Understanding the implications of hiring a family member.
  4. Making use of tax-free savings accounts for tax benefits.
  5. Maxing out the RRSP.
  6. In the case of operating through a corporation make sure to take in possible considerations.

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