As part of its new Affordability Plan, the federal government has announced changes to the Canada Workers Benefit (CWB), which could impact as many as three million Canadians.
On June 16, the Department of Finance confirmed that the benefit would be enhanced in 2022 with new support for low-income individuals and families who are working.
The boost will enable eligible workers to get up to $1,200 more this year alone, with an eligible couple able to get an extra $2,400 between them.
According to the feds, as many as three million Canadians will be able to access more support following the changes. The enhancement is expected to cost $1.7 billion in 2022.
It's part of a wider plan to make life more affordable in Canada and get inflation under control, following the lasting impacts of the global COVID-19 pandemic and Russia's invasion of Ukraine.
\u201cYesterday, we released our government's #AffordabilityPlan. It includes new, tangible support and our plan will put more money in the pockets of Canadians.\u201d— Chrystia Freeland (@Chrystia Freeland) 1655499198
What is the Canada Workers Benefit?
The CWB is a refundable tax credit issued by the federal government. Its purpose is to support individuals and families who are working but earning a low income.
It has two parts: a basic amount and a disability supplement.
To meet the eligibility criteria, individuals must be earning an income, be a resident of Canada and be 19 years of age or older. Those who are full-time students, confined to a prison or don't pay tax in Canada are not likely to qualify for the benefit.
Prior to the newly-announced boost, the maximum basic amount available for single individuals was $1,395. For families, the figure was $2,403.
These amounts may be reduced depending on your adjusted net income. The basic CWB also varies for residents of Quebec.
\u201cThe Canada Workers Benefit is a refundable tax credit available to eligible lower income Canadians to help ease the cost of living. \n\nLearn and apply: https://t.co/QzleVaFjlS #SupportCdns\u201d— Finance Canada (@Finance Canada) 1654022293
The total amount available to each person is calculated by considering their marital status, province or territory of residence, income, eligible dependents and more.
As a refundable tax credit, the CWB is claimed at the same time an individual's income tax return is filed.
The feds say most recipients will begin receiving the additional CWB support through their 2021 tax return, so look out for it if you haven't received it already.
Those who believe they're eligible for the CWB can apply by completing their taxes and following the instructions given in their certified tax software. An online form is also available.
This article’s cover image was used for illustrative purposes only.
The Canada Workers Benefit Is Being Boosted In 2022 & Millions Will Qualify For More Money
Source: News Article Viral
0 Comments