Benefit for advanced Canadian workers: Payment date and amount for 2025!

The Canadian government offers financial assistance to the working class who earn low incomes to support them in managing their expenses and appreciate their hard work through the Canada Worker Benefit.

Under the Canada Worker Benefit, recipients receive an Advance Canada Worker Benefit quarterly to help with the down payment. Canadians with CWB will receive the next ACWB payment in just two days, so people excited about the payment can check all about it here.

Advanced Worker Benefits in Canada

The federal government offers refundable tax credits to individuals and families through the CWB whose income is not sufficient. The allowance helps them manage their expenses with the rising cost of living and live well amid the financial crisis.

ACWB is part of CWB, where recipients receive advance payments three times a year. The advance is half of the CWB fee that recipients are entitled to receive based on their conditions. Under CWB payments, the government offers payments in two components – basic amount and disability allowance.

CWB advances are made three times a year in July, October and January of the following business year. CRA made the payment on the 10th of the payment month, however, if the payment day falls on a weekend or public holiday, the payment will be made before the last working day.

According to the ACWB payment schedule, the upcoming January 2025 ACWB payment will be made to the recipient’s account on January 10, 2025.

Why are you entitled to an ACWB payment?

Canadians who qualify for CWB benefits will qualify for ACWB benefits, so to receive an ACWB payment you must meet the following CWB eligibility requirements:

Basic qualification of CWB amount:

• You must be working and have a net income below the limit set by your province or territory.
• You are a year-round Canadian resident;
• You must be 19 years of age or older by the end of December 31 of the base year or have a child/common-law partner or spouse;

Disability allowance:

• You qualify for CWB Disability Allowance when you are eligible for Disability Tax Credit and have a Disability Tax Credit Certificate;
• Your income must meet the province’s income criteria,

Exemption:

• CWB/ACWB is not applicable to people who do not have to pay taxes, such as diplomats, civil servants of another country,
• Persons who were in prison or detention for more than 90 days during the base year;
• Excluded are people who are enrolled in full-time student courses for more than 13 weeks and who are listed as dependents on someone’s tax return.

People who meet the above requirements for either the basic amount or both the basic amount or the CWB Disability Allowance can automatically receive ACWB into the same account in which they received their CWB payment.

Canadians must be residents of Canada in the quarter in which they receive an ACWB payment.

What will you get through the Advance Canada Worker’s Benefit?

The ACWB payment is 50% of the CWB payment they qualify for based on their income, province of residence, adjusted family net income and dependent and disability tax credit. The 50% amount is split into quarterly payments to process the ACWB payment.

So Canadians who are eligible for an AWCB payment can check the following CWB maximum payment to get an idea of ​​their ACWB payment:

• Basic maximum amount of CWB:

• Individuals Maximum payout: $1518
• Families Maximum payout: $2616

• For singles and families, the maximum amount of the allowance is the same, i.e. 784 USD.

ACWB recipients can estimate their quarter based on 50% of the above payments. The payment for each recipient can vary depending on many factors, so we suggest you check the CRA Child and Family Allowance calculator to find out the amount of advance payment you will receive this January 2025.

You can go directly to the Child and Family Allowance calculator and calculate your ACWB payment for January 2025 by entering all the details depending on your situation before 31 December 2024.

Factors that may affect the ACWB payout

ACWB payment will be affected by the following circumstances that you need to know and understand:

• Changes in your life, such as marital status, moving dependents or moving to other provinces, etc.
• If you immigrated from Canada, you may lose your right to benefits;
• If you have been in prison or detained for more than 3 months (consecutive days), you may be excluded from payment;
• If those eligible for payment die before the benefit year, the advance payment will be cancelled, however, if the change occurs during the quarter, the payment process will not be affected.

ACWB payment reduction and phase-out threshold

If your income exceeds a certain limit, CWB payments will be reduced or phased out, so recipients should check the following reduction and phase-out thresholds:

• The basic CWB payment will be reduced if net income exceeds the income limit of $24,975 ($28,494 for a family);
• It will be phased out if income exceeds $35,095 (for singles) and ($45,943 for families);

• For Disability Allowance, the CWB payment will be lower if the individual’s adjusted income exceeds the limit of $35,098 ($45,932 for families),
• It will eventually stop once income reaches $40,325 for a single person. For families, the disability allowance will decrease when income rises to $45,932 and will stop if family net income is greater than $51,159 (when only one spouse is eligible for disability tax credit) or $56,386 (when both spouses are eligible for DTC )

ACWB payments will soon be processed into the CWB recipient’s account on January 10, 2025 to cover the costs, so please check your account.