The Canadian Revenue Agency (CRA) is launching a new payment for Canadian low-income workers, Advanced Canada Workers Benefit (ACWB). The scheme is to be implemented on 11 October 2024. The release of this payment is to provide relief and financial assistance to the worker’s family.
According to reports from Immigration News Canada, the disbursement is the extension of the Basic Canada Workers Benefit (CWB), a deposit to ensure an increment in income and overcome the inflation crisis.
Read the article further to know about Advanced Canada Workers Benefit payment and what are its criteria, and application to apply.
Overview of Advanced Canada Workers Benefit
The Advanced Canada Workers Benefit plan is a benefit launched by CRA to assist financially the low-income workers of Canada. The scheme enables the beneficiaries to get part of the payment in advance from Canada Workers Benefit funds, rather than waiting till the season of taxation. Normally, the beneficiaries get 50% of the CWB payments in three instalments within the year. The objective of this payment issued by CRA is to combat the cost of living expenses.
Dates the payment has to be released
The payment will be released on these dates
- 12 July 2024 – This payment has already been deposited by CRA
- 11 October 2024
- 10 January 2025
The ACWB payments, which are annually released by CRA, represent 50% of the total CWB amount for the year. Some beneficiaries may receive payment on the scheduled date while others may take 10 business days to get reflected in your accounts.
Categories of Canada Workers Benefit (CWB)
There are two categories in which CWB is divided:-
- Basic CWB Plan
- Disability Supplement Plan
Basic CWB Plan:
The Immigration News Canada defines Basic CWB payment as the calculation of adjusted net income and family status. Individuals whose income is below $24,975, will receive the maximum benefit of $1,518 annually. On the increase in income, the amount will be diminishing to $35,095 for singles. Families with an income of $28,494 diminishing at $45,934, will get the yearly benefit upto $2,616.
Disability Supplement:
The disability supplement is provided to individuals eligible for credit tax of disability. The singles earning a yearly income of $35,098 or below, will receive an amount of $784. If the family’s combined income is $40,325 or low is also eligible for this amount.
If both partners in a couple are eligible for payment, the required income must be $56,386 or less.
Eligibility for ACWB for Qualification
Given the criteria required to get eligible for CWB, consider the conditions and factors for the following:
- The applicant’s net income must be lower than the required level or below the limit of the province or territory where the applicant resides.
- The applicant must be 19 years or older by 31 December or must be living with a spouse, common-law partner, or child.
- The applicant must be residing in Canada for more than one year.
The following are not eligible if:
- Confined to imprisonment during the year
- If the applicant is a full-time student for over 13 weeks without patrons
- Because of diplomatic status Canada is not eligible to pay taxes.
Ensuring the Benefits
Immigration News Canada states that to ensure on-time arrival of ACWB payments in your bank account, the candidates must follow:
- File Taxes Early: The eligibility of the candidate depends upon the income tax returns determined by CRA.
- Sign Up for Direct Deposits: Delays can be reduced by making the payments allowed as direct deposits.
- Checking Pay Dates: keep monitoring dates when funds have to be received in your account.
- Verifying Eligibility: Check income and residence proof annually.
Application Process
- There is no separate application to apply for ACWB. The CRA accesses applicants based on income tax returns whether they are eligible for the scheme or not.
- On being eligible, the calculations are made on an income and tax basis and then the amount is transferred to the account.
- The beneficiaries must keep the bank account updated and file the tax return before 1st November of the benefit period.
