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finely98
New Member

Do i need to pay back the canada workers benefit? or is it just free money?

 
1 Reply

Do i need to pay back the canada workers benefit? or is it just free money?

It's imperative that we understand the reasoning behind the benefit, and this way we can find out if you are eligible, and also why it's free. According to the Canada Revenue Agency (CRA), the Canada Workers Benefit (CWB) is a refundable tax credit to help individuals and families who are working and earning a low income. There is a basic amount, and also a disability supplement.

You are eligible if you:

- Earn working income

- Are a resident of Canada throughout the year

- Are 19 years or older on dec 31.

You are NOT eligible if you:

- Are enrolled as a full-time student at a designated educational institution for more than 13 weeks in the year. Unless you have an eligible dependant

- Are confined to a prison or similar institution for a period of at least 90 days during the year

- Do not have to pay tax in Canada because you are an officer or servant of another country.

 

As for amounts,

The maximum basic amount is $1,395 for single individuals, and this amount is gradually reduced if your adjusted net income is more than $22,944, up until the point of a adjusted net income of $32,244.

 

The maximum basic amount for families is $2,403, and is gradually reduced if your adjusted family net income is more than $26,177, up until the point of a adjusted net income of $42,197; where you will receive nothing.

 

So in summary - this is a benefit that does indeed give you "free" money if your income is low, as a supplement to help you live, granted that you are working. If you go to school or prison, you may not claim this amount. You can also claim the amount up until a certain net income threshold, where the amount will now become 0, because you are considered to have earned enough income.

 

For more information, check out: Canada Revenue Agency (CRA) - Canada Workers Benefit

 

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