The new year brings fresh opportunities for Canadians to take advantage of federal benefits in 2025, including the Advanced Canada Workers Benefit (ACWB). This refundable tax credit supports lower-income workers, helping them tackle the rising cost of living. Advanced payments for the ACWB are being sent out this week, providing timely financial relief for those who qualify.
If you’re eligible, this payment could be a helpful boost to cover expenses this winter, alongside other government benefits arriving in January. Since these payments are issued automatically, it’s one less task to worry about as you manage your seasonal budget.
Here’s everything you need to know about the Advanced Canada Workers Benefit in January 2025, including how it works, eligibility criteria, and payment amounts.
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What Is the Canada Workers Benefit?
The Canada Workers Benefit (CWB) is a refundable tax credit aimed at supporting low-income workers across Canada. It offers financial assistance to both individuals and families through a base payment and an additional supplement for eligible individuals living with a disability.
This benefit is designed to reduce financial strain and encourage workforce participation, ensuring that lower-income Canadians can meet their everyday needs.
What Is the Advanced Canada Workers Benefit?
The Advanced Canada Workers Benefit (ACWB) allows eligible Canadians to receive a portion of their CWB before tax season. Rather than waiting until you file your tax return, you can receive up to 50% of your total benefit in advance, distributed in three installments throughout the year.
These payments are automatically issued to eligible recipients—no application required. This convenience ensures you get financial support when you need it most.
Who Is Eligible for the Canada Workers Benefit?
To qualify for the CWB, you must meet the following criteria:
- Income Requirements: Your working income and net income must be below the thresholds set for your province or territory.
- Residency: You must have been a Canadian resident throughout the year.
- Age: You must be at least 19 years old by December 31 or live with a spouse, common-law partner, or child.
You won’t qualify if:
- You were a full-time student for more than 13 weeks during the year (unless you had an eligible dependent).
- You were incarcerated for at least 90 days in the year.
- Your role as a diplomat or similar exempted you from paying Canadian taxes.
How to Apply for the Canada Workers Benefit
Claiming the CWB is simple:
- If filing your taxes electronically, your tax software will guide you through adding the CWB.
- If filing a paper return, include Schedule 6, which is the CWB form.
For the disability supplement, the process is the same. If both you and your spouse or common-law partner qualify, only one of you can claim the basic amount, though both can claim the disability supplement on your respective tax returns.
Advanced payments under the ACWB program are issued automatically, as long as you file your tax return before November 1 of the benefit period.
How Much Is the Canada Workers Benefit?
The CWB amount depends on your income and location.
For single individuals without children:
- Maximum payment: $1,518.
- Phase-out begins at incomes over $24,975 and ends at $35,095.
For families with a spouse, common-law partner, or child:
- Maximum payment: $2,616.
- Phase-out begins at incomes over $28,494 and ends at $45,934.
There’s also a disability supplement of up to $784, with thresholds varying slightly for singles and families.
Advanced Payment Amounts for January 2025
The January 2025 ACWB payment is roughly one-sixth of your annual benefit:
- Up to $253 for single individuals.
- Up to $436 for families with a spouse, partner, or child.
- An additional $130.66 if you qualify for the disability supplement.
Note: Amounts may vary in Quebec, Alberta, and Nunavut, where specific thresholds and maximums apply. Use the CRA’s benefit calculator for a personalized estimate.
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Is the Canada Workers Benefit Taxable?
No, the Canada Workers Benefit is not taxable. Since it’s a refundable tax credit, it either reduces the taxes you owe or provides a refund if you don’t owe taxes.
When Are the Canada Workers Benefit Payment Dates?
The next Advanced Canada Workers Benefit payment will be issued on Friday, January 10, 2025.
This payment is the final installment for the 2023 tax year. For the 2024 tax year, the following advance payments will be issued:
- July 11, 2025
- October 10, 2025
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