The Canada Workers Benefit (CWB) is one of the most underutilized financial benefits in Canada. It's designed specifically for working Canadians with low incomes, and many newcomers in their first years in Canada qualify without knowing it.
What Is the Canada Workers Benefit?
CWB is a refundable tax credit. That means even if you owe no income tax, you can still receive the benefit as a cash payment. It's the federal government's way of supplementing the incomes of low- and modest-income workers to make work pay more than social assistance.
For 2025, the maximum CWB amounts are approximately:
- Singles: Up to $1,590
- Families: Up to $2,739
- Persons with disabilities (disability supplement): Up to $784 additional
Who Qualifies?
You qualify for the basic CWB if you:
- Are a Canadian resident for income tax purposes
- Are 19 years or older (or have a spouse/partner or dependent child)
- Earned working income (employment or self-employment income) during the year
- Have net income below the phase-out threshold:
- Single: approximately $33,015
- Family: approximately $43,212
The benefit gradually phases out as income rises above these levels, disappearing around $35,000 for singles and $57,000 for families.
How to Claim It
Claim the CWB when you file your annual tax return. It's Schedule 6 on the T1 return. Tax software (TurboTax, Wealthsimple Tax, UFile) calculates it automatically. If you're doing your taxes manually or using a free tax clinic, ask specifically about Schedule 6.
Advanced Payments: Get Money Throughout the Year
Starting in 2023, the CRA automatically sends advance payments of the CWB if you qualified the previous year. These come in three instalments, in July, October, and January, so you get cash throughout the year rather than waiting until tax season.
To receive advance payments in your first eligible year, you can apply on your tax return.
Newcomers and CWB Eligibility
As a newcomer, you're eligible starting from your first full tax year as a resident. Permanent residents and protected persons (refugees) are eligible. Work permit holders who are residents for tax purposes are generally eligible, though confirm with a tax preparer given the complexity.
Free Tax Clinics in Ottawa
If your income is modest, you can get your taxes done free through the Community Volunteer Income Tax Program (CVITP). Ottawa runs free tax clinics through libraries, community centres, and settlement agencies including OCISO and the Ottawa Community Immigrant Services Organization. These volunteers will claim every credit you're entitled to, including CWB.
Find Ottawa clinics at canada.ca/taxes-freeclinic.
Don't Miss This
Many newcomers don't file a tax return in their first year in Canada because they think they don't earn enough to owe taxes. That's backwards, filing a return is how you receive benefits like CWB, GST/HST credit, and the Ontario Trillium Benefit. Always file, even if you think you owe nothing.
The CWB is free money for working hard at modest earnings. Claim it.
