taxes2846
Returning Member

Why does the Canadian Workers Benefit credit increase when our income increases? Is this a bug? Shouldn't the credit decrease if you make more?

My wife and I are self-employed and qualify for the Canadian Workers Benefit. The weird thing though is when I cause our total income to increase (by deleting things in TurboTax like business expenses) the credit increases as well. Is this a bug? Shouldn't we receive the maximum CWB credit if our income is LOWER? Not the other way around?

‎April 28, 2022 10:00 AM
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Antomeister
Level 4

Troubleshooting

According to the Canada Revenue Agency (CRA), The Canada Workers Benefit (CWB) depends on your income, Your province/territory, and other factors.

 

The Basic Amount goes as follows:

* $1,395 for single individuals

The amount is gradually reduced if your adjusted net income is more than $22,944. No basic amount is paid if your adjusted net income is more than $32,244.

 

* $2,403 for families

The amount is gradually reduced if your adjusted family net income is more than $26,177. No basic amount is paid if your adjusted family net income is more than $42,197.

 

On top of this, the Canada Revenue Agency (CRA) Calculates your payment amount based off these factors:

  • marital status - eligible spouse
  • province or territory of residence
  • earned working income
  • adjusted family net income
  • eligible dependants
  • eligibility for the disability tax credit

Since the calculation is not a linear one, it could be multiple factors like marital status, or dependants ontop of the income that you are earning. The Canada Revenue Agency (CRA) offers a calculation sheet where you can fact-check the numbers: CRA - Calculation Sheets for the CWB

For more information, check out: CRA - Canada Workers Benefit

 

Thank you for choosing TurboTax.

‎April 28, 2022 3:28 PM
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