The Canada Revenue Agency (CRA) is scheduled to issue the next Advanced Canada Workers Benefit (ACWB) payment on October 11, 2024, providing crucial financial support to low-income workers and their families.
According to Immigration News Canada (INC), this disbursement is part of the broader Canada Workers Benefit (CWB) program, designed to enhance the incomes of working individuals and help them manage the increasing cost of living.
Understanding the Advanced Canada Workers Benefit (ACWB)
The ACWB program allows eligible low-income workers to receive a portion of their Canada Workers Benefit in advance. Instead of waiting until tax season, beneficiaries can receive up to 50% of their CWB amount across three payments distributed throughout the year.
For the 2024 benefit year, the payment schedule includes:
- July 12, 2024 (already issued)
- October 11, 2024
- January 10, 2025
Overview of the Canada Workers Benefit (CWB) and Disability Supplement
The CWB is composed of two components: the basic CWB benefit and a disability supplement for those who qualify.
Basic CWB Benefit:
As per INC, the basic CWB benefit amount is determined by a recipient’s adjusted net income and family status. Single individuals can receive a maximum annual benefit of $1,518 if their income does not exceed $24,975. However, this amount gradually decreases as income rises and phases out entirely at $35,095.
For families, the maximum benefit is $2,616 for an adjusted net income of $28,494 or less, with benefits phasing out at $45,934.
Disability Supplement:
Recipients who are eligible for the disability tax credit can also qualify for the CWB’s disability supplement. For singles earning $35,098 or less annually, the disability supplement provides an additional $784. Families with a combined income of $40,325 or less may also qualify for this amount. If both partners are eligible, their total family income must be $56,386 or less to receive the supplement.
Eligibility for the Advanced Canada Workers Benefit
Eligibility for the CWB, and thus the ACWB, depends on several criteria, including income, age, and residency requirements:
- Working Income: Applicants must be employed, and their net income should fall within the limits specific to their province or territory.
- Age: Individuals must be at least 19 years old by December 31 or reside with a spouse, common-law partner, or child.
- Residency: Applicants must have lived in Canada for the entire tax year.
Certain individuals, including those incarcerated during the year, full-time students without dependents for more than 13 weeks, and those exempt from paying Canadian taxes due to diplomatic status, are ineligible for the CWB.
Maximizing Your Benefit
INC highlights several steps to ensure timely receipt of the Advanced Canada Workers Benefit:
- File Taxes Early: The CRA uses income tax returns to determine eligibility. Filing returns promptly can prevent delays in payments.
- Sign Up for Direct Deposit: Direct deposit ensures faster access to funds by avoiding potential postal delays.
- Monitor Payment Dates: Be aware of the scheduled payment dates to anticipate when funds will be available.
- Review Eligibility Annually: Confirm that you meet the income and residency criteria each year to maintain your benefit eligibility.
Payment Dates to Remember
The remaining ACWB payments for the 2024 benefit year are scheduled for October 11, 2024, and January 10, 2025. These quarterly payments account for up to 50% of the total CWB amount for the year. While most recipients can expect to receive their funds on time, processing times may vary, and it could take up to 10 business days for payments to appear in bank accounts depending on the financial institution and whether direct deposit is set up.
ACWB Application Process
Reports confirm that there is no separate application required for the Advanced Canada Workers Benefit. When individuals file their income tax returns, the CRA automatically assesses their eligibility for the CWB. If qualified, the CRA calculates the benefit amount and begins issuing payments accordingly.
To ensure prompt payment, individuals should file their tax returns before November 1 of the benefit period and ensure that their banking information is up to date.
