Canada Revenue Agency to launch Advanced Canada Workers Benefit payments
The Canada Revenue Agency (CRA) is set to issue the new Advanced Canada Workers Benefit (ACWB) payment on October 11th, 2024.
This payment provides financial relief for low-income workers and their families across Canada.
Immigration News Canada reports that this disbursement is part of the Canada Workers Benefit (CWB) program, which helps working members of the society increase their income and cope with rising living costs.
Understanding Advanced Canada Workers Benefit
The Advanced Canada Workers Benefit (ACWB) is a payment program designed to help low-income workers. It allows eligible individuals to receive part of their Canada Workers Benefit (CWB) in advance, rather than waiting until tax season.
Recipients can get up to 50% of their CWB amount through three payments spread throughout the year, providing financial support when they need it most.
The payment schedule for the 2024 benefit year includes:
– July 12th, 2024 (already issued)
– October 11th, 2024
– January 10th, 2025
Overview of the Canada Workers Benefit (CWB) and Disability Supplement
The CWB consists of two parts: the basic CWB benefit and the disability supplement.
Basic CWB Benefit
INC informs that the basic CWB amount is calculated based on adjusted net income and family status. For single individuals, the maximum annual benefit is $1,518 if their income is $24,975 or less.
This amount gradually decreases as income rises, phasing out completely at $35,095. For families, the maximum annual benefit is $2,616 for an adjusted net income of $28,494 or less, phasing out at $45,934.
Disability Supplement
Individuals eligible for the disability tax credit can also receive a disability supplement.
If you are single and earn $35,098 or less per year, you can get up to $784. For families, if their combined income is $40,325 or less, they can also qualify for this amount.
Also, if both partners in a couple are eligible for the supplement, their total family income must be $56,386 or less to receive it.
Eligibility for the Advanced Canada Workers Benefit
To qualify for the Canada Workers Benefit (CWB), you need to meet specific requirements related to income, residency, and other factors. Here are the main conditions:
- Working Income: You must have a job and your net income should be below the limit for your province or territory.
- Age: You must be at least 19 years old by December 31, or live with your spouse, common-law partner, or child.
- Residency: You must have lived in Canada for the entire year.
Individuals are not eligible for the CWB if they were confined to prison during the year, are full-time students for over 13 weeks without dependents, or do not pay tax in Canada due to diplomatic status.
Enhancing your benefits
INC reports that in order to ensure timely receipt of the Advanced Canada Workers Benefit payments, individuals can follow these guidelines:
- File Taxes Early: The CRA determines eligibility based on income tax returns. Filing promptly can facilitate timely payments.
- Sign Up for Direct Deposit: Direct deposit allows payments to be deposited directly into bank accounts, reducing delays.
- Monitor Payment Dates: Keep track of payment dates to anticipate when funds will be available.
- Check Eligibility: Review income and residency criteria annually to maintain eligibility.
Payment dates to note
Reports tell of these are the remaining dates for the Advanced Canada Workers Benefit payment dates:
- October 11th, 2024
- January 10th, 2025
These payments, issued quarterly, represent up to 50% of the total CWB amount for the year. While most recipients will receive payments on schedule, it may take up to 10 business days for funds to appear in bank accounts, depending on financial institutions and direct deposit enrollment.
Application Process for the ACWB
- Further reports relate that no separate application is needed for the Advanced Canada Workers Benefit. When individuals file their income tax and benefit returns, the CRA automatically assesses their eligibility for the Canada Workers Benefit.
- If eligible, the CRA calculates the benefit amount and begins issuing payments accordingly.
- To ensure timely receipt, individuals are advised to file their tax returns before November 1st of the benefit period and keep their banking information updated.
