Refundable tax credit for Working income tax benefit: Application and Eligibility

1. What is the working income tax benefit (WITB)?
2. Are you eligible for the WITB?
3. What is the disability supplement?
4. What are the WITB provincial reconfigurations?
5. How can you claim the WITB?
6. What is an eligible dependant?
7. What is an eligible spouse?
8. What is the family net income?
9. What is the working income?

 

1. What is the working income tax benefit?
The working income tax benefit (WITB) is a refundable tax credit intended to provide tax relief for eligible working low-income individuals and families who are already in the workforce and to encourage other Canadians to enter the workforce.

You can claim the WITB on line 453 of your income tax and benefit return if your working income is over $3,000, and you meet all the eligibility criteria.

2. Are you eligible for the WITB?
You are eligible for the WITB if:

  • You are 19 years of age or older on December 31st; and
  • You are a resident of Canada for income tax purposes throughout the year.

Exception
If you are under 19 years of age, you may still be eligible for the WITB, if you have a spouse or common-law partner or an eligible dependant on December 31st.

You are not eligible for the WITB if:

  • You do not have an eligible dependant and are enrolled as a full-time student at a designated educational institution for more than 13 weeks in the year;
  • You are confined to a prison or similar institution for a period of 90 days or more in the year; or
  • You do not have to pay tax in Canada because you are an officer or servant of another country, such as a diplomat, or a family member or employee of such person.

3. What is the disability supplement?
If you are eligible for the WITB and the disability amount, you may also be eligible to claim an annual disability supplement.

To be eligible for the disability supplement, your working income must be over $1,150 and the Canada Revenue Agency (CRA) must have an approved Form T2201, Disability Tax Credit Certificate on file. If you have not already sent the CRA a completed Form T2201, you must do so to receive the disability supplement.

4. What are the WITB provincial reconfigurations?
Some provinces/territories have exercised the option to reconfigure the WITB calculation based on specific social and economic realities.

Note:
The CRA will determine the amount of WITB to pay based on the eligible individual's province or territory of residence at the end of the year.

5. How can you claim the WITB?
To calculate your WITB refundable tax credit, complete Schedule 6, Working Income Tax Benefit for your province or territory specific income tax and benefit return. The WITB amount calculated on Schedule 6 must then be claimed on line 453 of your return.

6. What is an eligible dependant?
For WITB purposes, you have an eligible dependant if you have a child who, at the end of the year:

  • lives with you;
  • is under 19 years of age; and
  • is not eligible for the WITB.

For WITB purposes, eligible dependants can be registered by completing Form RC66, Canada Child Benefits Application. However, if your dependants are already registered for the goods and services tax/harmonized sales tax (GST/HST) credit, the CRA will automatically take them into consideration when calculating your WITB amount.

7. What is an eligible spouse?
For WITB purposes, an eligible spouse at the end of the year is a person who meets all of the following conditions:

  • is your spouse or common-law partner on December 31st;
  • is a resident of Canada throughout the year;
  • is not enrolled as a full-time student at a designated educational institution for a total of more than 13 weeks in the year, unless he/she has an eligible dependant at the end of the year;
  • is not confined to a prison or similar institution for a period of 90 days or more during the year; and
  • is not an officer or servant of another country, such as a diplomat, or a family member or employee of such person.

8. What is the family net income?
Family net income is an individual's net income added to the net income of their spouse or common-law partner, minus any amount reported for Universal Child Care Benefit (UCCB) (line 117 of the Income Tax and Benefit Return). Net income is the amount on line 236 of the Income Tax and Benefit Return.

9. What is the working income?
Working income for a tax year is the total amount of an individual's or family's income for the year from employment and business (excluding losses).

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