The Federal Government recently announced that the Canada Workers Benefit will now be available to roughly one million more Canadians, lifting nearly 100,000 people out of poverty.
The Canada Workers Benefit is a refundable tax credit that helps people and families who are working and earning a low income.
It is a sizable tax refund for workers, but the previous eligibility criteria excluded many low-wage workers from the program. That meant people were still living below the poverty line despite working full-time jobs.
The new changes in the budget provide tax refund eligibility to millions of low-income workers. Those who are single and without children could receive a refund of up to $1,400, while workers with families can receive up to $2,400.
Despite the extra support, some families may still need access to quick cash and having access to guaranteed loans no matter what could be a viable solution.
The updates to this federal budget mean that 3.2 million Canadians will now be eligible for this support.
Low-wage workers are among those who have been hardest hit by the COVID-19 pandemic. The government is hoping that recovery can start with building a stable workforce through improved working wages and addressing income inequality in Canada.
The Canada Worker’s Benefit eligibility has expanded to include those with incomes up to $32,244 for single Canadians without children, $42,197 for single-earner families, and $56,197 for double-earner families.
Secondary earners (those who make less money than their partners, the majority of whom are women) will be able to exclude up to $14,000 of their working income when calculating the benefit, allowing them to access a more generous tax refund.
These changes mean that most full-time workers earning minimum wage will receive significant support through tax credits. This support will increase the disposable income available to low-wage workers.
To claim the Canada workers benefit, you must either do your taxes electronically and follow the instructions to fill out and submit the Schedule 6, Canada workers benefit form, if you are filing a paper return.
With few exceptions, anyone who has earned income is eligible for the Canada workers benefit (CWB). For Canadians under the age of 25, eligibility also includes those who have not completed high school or higher education. This change makes the CWB available to the many low-income Canadians that are currently excluded.
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