What is the Canada Workers Benefit and can I claim it if I work in Ontario?

The Canada Workers Benefit (CWB) is a refundable federal tax credit designed to support low-income working individuals and families. As a refundable credit, it can result in a refund even if you owe no income tax — it puts money back in your pocket. Ontario residents are fully eligible; residency in the province does not affect the federal CWB.

To qualify, you must be a Canadian resident at the end of the year, at least 19 years old (or have a spouse/common-law partner or dependant), and have earned employment or self-employment income. Your net income must fall below the income threshold for the year. As income rises the benefit phases out. There is also a disability supplement within the CWB for individuals who qualify for the Disability Tax Credit.

CRA automatically calculates the CWB when you file your T1, so you do not need to fill in a separate complex form — it is triggered by your income level. However, you can also receive advance payments of the CWB throughout the year by applying to CRA; these prepayments reduce the refund you would otherwise receive at tax time.