Who qualifies for the Advance Canada Workers Benefit?

To receive the ACWB, you must qualify for the Canada Workers Benefit (CWB). Requirements: be at least 19 years old (or have a spouse/CLP or eligible dependant); be a Canadian resident for the full tax year; have earned income (employment income, self-employment income, or certain other working income); have a net income below the phase-out threshold for your province. Single individuals phase out at approximately $33,015 (basic CWB) and for the disability supplement separately. Families phase out at a higher income level. Students enrolled full-time for more than 13 weeks are not eligible unless they have an eligible dependant.

How much is the Advance Canada Workers Benefit?

The ACWB advance pays 50% of your estimated annual CWB entitlement spread across three quarterly payments. The maximum base CWB for 2025 is approximately $1,590 for single individuals and $2,739 for families. That means the maximum advance payments across three quarters would be approximately $265/quarter for singles and $456/quarter for families. The disability supplement adds up to approximately $784/year for eligible individuals. The remaining 50% is reconciled on your annual T1 tax return — if advances were too large based on actual income, you repay the difference; if too small, you receive the balance.

When are the Advance Canada Workers Benefit payments made?

ACWB is paid three times per year: July (for the April–June entitlement), October (for the July–September entitlement), and January (for the October–December entitlement). There is no April payment — the April–June quarter is covered by the July payment, which ensures the prior-year tax return has been filed and CRA can confirm eligibility. The remaining 50% is received as a credit reducing your balance owing (or increasing your refund) when you file your T1 return after June 15 of the following year.

How does the ACWB appear in my bank account?

The ACWB deposit appears as "Advance Canada Workers Ben" or similar text in bank statements. Like all CRA benefit deposits, it is delivered through direct deposit if registered, or by cheque if not. It is non-taxable — you do not include it as income on your tax return and no T4A is issued for it. The advance amounts are tracked by CRA and reconciled against your final calculated CWB entitlement when you file your annual return.

What happens if I receive too much ACWB?

If your actual income for the year turns out to be higher than CRA estimated (meaning you were entitled to less CWB than they paid in advance), you will have to repay the difference when you file your tax return. The overpayment reduces your refund or is added to any balance owing. CRA also reduces future ACWB advance payments if you have a recent history of receiving more than your actual CWB entitlement. Conversely, if you received too little, the balance comes back to you as part of your refund or credit on your return.

Is the Canada Workers Benefit the same as the Working Income Tax Benefit (WITB)?

Yes. The Canada Workers Benefit (CWB) is the renamed and enhanced version of the Working Income Tax Benefit (WITB), which existed from 2007 to 2018. In 2019, the WITB was renamed the CWB and the benefit structure was updated (higher maximum amounts, adjusted phase-in/phase-out ranges). In 2023, the advance quarterly payment system (ACWB) was added so eligible workers receive money throughout the year rather than only at tax filing. If you recall WITB from older tax returns, it is the same program under a new name and improved structure.

What Is the Advance Canada Workers Benefit? (ACWB Explained)

Q: What is the Advance Canada Workers Benefit (ACWB)?

The Advance Canada Workers Benefit (ACWB) is a quarterly direct deposit that pays out a portion of the Canada Workers Benefit (CWB) in advance — before you file your tax return. The CWB is a refundable tax credit for low-income working Canadians (those who earn employment or self-employment income but have relatively low net income). Starting in 2023, CRA began paying 50% of the CWB estimated entitlement in advance through the ACWB quarterly payment program, rather than having workers wait until tax filing to receive the full credit.

Checking your bank account and seeing “Advance Canada Workers Ben” — that is the ACWB. Here is everything you need to know about this quarterly payment and whether you qualify.

What the ACWB is

The Advance Canada Workers Benefit (ACWB) is a prepayment system for the Canada Workers Benefit (CWB) — a refundable tax credit designed to encourage low-income Canadians to remain in the workforce by topping up their after-tax income.

Before 2023, low-income workers had to wait until they filed their tax return to receive the full CWB. Starting with the 2023 tax year, CRA pays 50% of the estimated annual CWB in three quarterly advance deposits, and the other 50% is settled on the annual tax return.

The Canada Workers Benefit: what it is

The CWB has two components:

1. Basic CWB

Available to low-income workers with earned income (employment or self-employment income).

How it’s calculated:

Phases in as your earned income rises from zero (incentivizes work)
Reaches a maximum when earned income hits the phase-in threshold
Phases out as net family income rises above the reduction threshold

2025 approximate maximum amounts by family situation:

Family situation	Maximum CWB (basic)	Phase-out starts at	Fully phased out at
Single individual	~$1,590	~$24,975 net income	~$33,015
Family (couple or single parent)	~$2,739	~$27,770 net income	~$43,212

These thresholds vary slightly by province (Quebec, Nunavut, BC, Alberta have adjusted amounts).

2. Disability Supplement

Available to eligible CWB recipients who also qualify for the Disability Tax Credit (DTC).

Recipient	Maximum disability supplement
Individual with disability	~$784/year
One or both spouses with disability	Up to ~$784 each

The ACWB advance: how it works

CRA uses your most recently filed tax return to estimate what CWB you will likely qualify for in the current year. It then pays 50% of that estimate across three quarterly advance payments.

Quarterly ACWB payment months

Payment	Covers	Approximate timing
July	April–June entitlement	Mid-July
October	July–September entitlement	Mid-October
January	October–December entitlement	Mid-January

No payment in April — the July payment covers the earlier quarter.

ACWB advance calculations example

Single person with $25,000 employment income, Ontario resident:

Estimated CWB entitlement: ~$1,200/year
50% paid in advance: $600 total in three quarterly payments
Quarterly ACWB deposit: ~$200/quarter (July, Oct, Jan)
Remaining 50% ($600): settled at tax filing

Annual reconciliation on the T1 return

When you file your annual tax return, CRA calculates your actual CWB entitlement based on real income figures. It then compares that to the advances you received:

Scenario	What happens
You received less than your actual entitlement	Remaining amount reduces your balance owing or increases your refund
You received more than your actual entitlement	The overpayment reduces your refund or adds to balance owing
Your income was too high to qualify at all	Full advance amount is clawed back

Note: If you did not receive ACWB advances but qualify for the CWB, you receive the full year’s amount at tax filing time as a credit. Filing your return is required to receive any CWB — including catching up on missed advance payments.

Who qualifies (and who does not)

You qualify if:

Age 19+, OR have a spouse/common-law partner, OR have an eligible dependant
Canadian resident for the full year
Have earned income (employment wages, self-employment net income, registered disability savings plan income)
Net family income is below the phase-out threshold
Not a full-time student for more than 13 consecutive weeks (unless you have an eligible dependant)
Not incarcerated for 90+ days in the year

You do not qualify if:

You are under 19 with no dependants
You have no earned income (investment income, pension income, and CPP do not count as “earned income” for CWB purposes)
Your net income exceeds the phase-out threshold
You were a full-time student for more than 13 weeks without an eligible dependant

Self-employed Canadians

Self-employment income counts as earned income for CWB purposes. However, net self-employment income (after business expenses) is what CRA uses in the calculation. Deductions like home office, vehicle, and business expenses reduce net income — which increases your CWB entitlement.

ACWB by province: adjusted amounts

Most provinces use the federal CWB amounts, but some provinces have their own adjusted parameters:

Province	Notes
BC	Provincial amounts and thresholds differ slightly
Alberta	Somewhat higher thresholds
Quebec	Province calculates its own equivalent (the Work Premium / Prime au travail) separately; Quebec residents receive the Quebec version, not the federal CWB
Nunavut	Adjusted amounts
All others	Federal defaults apply

Quebec note: Quebec residents do not receive the federal CWB on their federal return — Quebec administers its own equivalent program. Quebec residents are not eligible for the ACWB.

Practical tip: file your return to protect your ACWB

The ACWB advance amount is based on your most recently filed return. If you don’t file for a year:

CRA stops advance payments (no current-year return to base the estimate on)
You lose the advance payments for that year until you file a late return
You can recover missed ACWB amounts by filing, but you will not receive them during the year

Low-income Canadians who earn even a small amount of employment or self-employment income should always file their T1 to receive the CWB and ACWB, GST/HST Credit, and other automatic benefits.

How to check your ACWB amounts in CRA My Account

Log in at canada.ca/cra-my-account
Select “Benefits and credits”
Look for Canada Workers Benefit / Advance Canada Workers Benefit
You can see your estimated entitlement, advance amounts paid, and scheduled payment dates