The Canada Workers Benefit (CWB) is a non-taxable payment designed to support individuals and families with low working income. It has two components: a basic amount and a disability supplement. To qualify, a person must have at least $3,000 in working income. The benefit amount is based on a person’s (or couple’s) working income and net income. While the calculation is simple for single individuals, it can be more complex for couples. For couples, only one spouse can receive the benefit.
Who is eligible:
A person can claim the CWB if they meet all of the following conditions:
They are 19 or older on December 31 of the tax year, or younger if they live with a spouse or child.
They were a resident of Canada throughout the tax year.
They earned at least $3,000 in working income (or $1,150 if eligible for the disability supplement).
They were not enrolled as a full-time student at a designated educational institution for more than 13 weeks in the year, unless they have an eligible dependent.
They were not in prison for 90 days or more during the tax year.
Note re students:
Most Canadian universities and colleges divide the year into three sessions. On a T2202 slip, each session is reported with start and end dates and number of months. For example, a typical September–December semester is recorded as four months of full-time enrollment, which is over 13 weeks. This means that even attending just one full-time semester may make a student ineligible for the CWB.
There is no definition of “full-time” in the Income Tax Act or any regulation. The CRA relies on institutions to define what “full-time” means.
To receive the disability supplement, the person must have an approved Disability Tax Credit Certificate (Form T2201).
What counts as working income:
Working income includes employment income, self-employment income, and net income from a business.
Benefit amount (for 2025):
The maximum Canada Workers Benefit (CWB) for 2025 is $1,633 for a single individual and $2,813 for a person with a spouse. The maximum disability supplement is $1,633.
The benefit is gradually reduced (clawed back) once income exceeds certain thresholds.
Single individuals:
The benefit is calculated as:
The lesser of
$1,633 and
[27% × (working income − $3,000)]
minus 15% of the amount by which net income exceeds $26,855
Examples:
With employment income of $5,000:
27% × ($5,000 − $3,000) = $540
Benefit = $540 (since this is less than $1,633).
With employment income of $30,000:
Base amount = $1,633
Reduction = 15% × ($30,000 − $26,855) = $472
Benefit = $1,633 − $472 = $1,161.
Based on the benefit amounts and thresholds, a single person will not qualify once their net income is more than $37,742.
Individuals with a spouse:
The benefit is calculated as:
The lesser of
$2,813, or
27% × (combined working income − $3,000) minus 15% of the amount by which combined net income exceeds $30,639.
Only one spouse can receive the benefit.
A secondary earner exemption applies, which reduces combined net income for the calculation.
Because of this adjustment, the calculation for couples is more complex than for single individuals.
If the individual’s spouse was not resident in Canada throughout the year and was not a resident of Canada at the end of the year, then the individual is treated as single for purposes of the CWB calculation.
UFile - how is the benefit applied for?
Single individuals:
The CWB is claimed by filing a tax return with Schedule 6. In UFile, a Schedule 6 is automatically added if the client is eligible—no special steps are required.
Couples:
In UFile, under Spouse interview type, you must select Complete information—even if the spouse has already filed or will file separately.
This is necessary because the CWB calculation requires both spouses’ working income details, not just their net income.
UFile will then generate Schedule 6 for one spouse.
If Complete information is not selected, Schedule 6 will not be created and no benefit will be issued, regardless of whether the person is actually eligible.
Disability supplement:
If a spouse or dependent has a valid T2201 Disability Tax Credit Certificate, go to Medical, disability, caregiver in UFile.
Click the plus sign beside Infirmity and Disability, enter the name or description of the condition, and answer whether the infirmity provides entitlement to the Canada caregiver amount.
The CWB calculation will then include the disability supplement.
Advanced CWB and Form RC210:
If a person qualifies for the CWB, they will also receive advance payments for the following year.
How it works:
Example: If someone’s 2025 CWB entitlement was $1,500, they would receive half that amount, i.e. $750, as an advance payment (ACWB) for 2026.
Advance payments are issued in three installments: July and October 2026, and January 2027.
In 2027 an RC201 would be issued reporting an amount of $750 in box 10.
Reconciling on the tax return:
The CWB for a given tax year is always calculated based on that year’s income (e.g., 2025 CWB is based on 2025 income).
The calculation happens when the tax return is filed (spring 2026 for the 2025 return).
On the 2025 return:
Line 45300: reports the calculated CWB (a credit).
Line 41500: reports the lesser of the Line 45300 amount and the ACWB (a debit).
Slips and reporting:
Anyone who receives an advance will also get an RC210 slip, with the advance reported in Box 10.
If using Auto-fill, the RC210 will download automatically.
If entering manually in UFile: go to Other information slips → RC210 → Box 10.
Future advances:
If the CRA calculates a CWB on a return, it will automatically issue advance payments for the next year.
Example: If the 2025 return shows a CWB entitlement, the CRA will assume the person qualifies again for 2026 and issue advance payments in July 2026, October 2026, and January 2027.
Examples:
2025 CWB = $1,000; Advance reported on RC210 = $700
Line 45300 = $1,000 (credit)
Line 41500 = $700 (debit)
Net refundable credit = $300
An ACWB of $500 will be paid for 2026 tax year, in installments: July and October 2026, and January 2027
2025 CWB = $500; Advance reported on RC210 = $700
Line 45300 = $500 (credit)
Line 41500 = $500 (debit)
Net result = no effect on refund or balance owing
An ACWB of $250 will be paid for 2026 tax year, in installments: July and October 2026, and January 2027
2025 CWB = $0; Advance reported on RC210 = $700
Line 45300 = $0 (credit)
Line 41500 = $0 (debit)
Net result = no effect on the return
No ACWB will be paid for 2026 tax year
Warning – was the person a student in the tax year?
If a person has employment income that qualifies them for the CWB, ask whether they attended college or university and paid tuition.
The person cannot claim the CWB if they were enrolled full-time for more than 13 weeks in the year (i.e. one semester or more), unless they have an eligible dependent.
If the client paid tuition, they should have a Tuition Certificate (T2202).
Pay close attention to Box 25 on the certificate, which shows the number of months of full-time enrollment.
If Box 25 is not entered in UFile, the person may incorrectly claim the CWB. This can happen even if the CRA received the T2202 from the institution.
Warning - CWB for person with spouse
If a client has a spouse, and they have employment income in the range which qualifies them for the Canada Workers Benefit, complete information is required for the spouse in UFile (even if the spouse’s return is not actually filed).
If complete information is not given a Schedule 6 calculation of the benefit will not be generated and the person will not receive the benefit.
The client should be advised against filing a return if their spouse is not also filing at the clinic, or complete information can’t be provided.