The Advanced Canada Workers Benefit (ACWB) is a government initiative to support low-income workers by providing quarterly financial aid to help manage living expenses. In 2025, the first payment of the ACWB is set to be deposited on January 10, 2025. This article explains the program, including eligibility criteria, payment amounts, application process, and what to do if your payment is delayed.
What is the Advanced Canada Workers Benefit?
The ACWB is part of the Canada Workers Benefit (CWB) program, a refundable tax credit aimed at reducing poverty and supporting workforce participation. Through this initiative, eligible individuals and families can receive up to 50% of their annual benefit in advance, helping to ease financial pressures throughout the year.
Also Read: Canada GST Credit 2025: Are you eligible for upcoming Extra GST Payment?
The ACWB comprises two components:
- Basic Amount: Designed to assist single workers and families with low incomes.
- Disability Supplement: Additional support for individuals with disabilities.
Who is Eligible for the ACWB?
Eligibility for the ACWB is determined by several factors:
Basic Requirements
- Residency: Must be a Canadian resident throughout the year.
- Age: Must be at least 19 years old by December 31 or living with a spouse, common-law partner, or dependent child.
Income Criteria
| Category | Maximum Benefit | Reduction Starts At | Phased Out At |
|---|---|---|---|
| Single Individuals | $1,518 | $24,975 | $35,095 |
| Families | $2,616 | $28,494 | $45,934 |
| Disability Supplement | $784 | $35,098 (single) | $56,386 (families) |
Exclusions
You will not qualify if:
- You are a full-time student for more than 13 weeks unless you have an eligible dependent.
- You are confined to a prison or similar institution for at least 90 days.
- You do not pay Canadian taxes due to diplomatic or similar status.
Canada ACWB Payment Amounts
The ACWB payments are based on your income and family situation, as outlined in the table above. Payments are structured to ensure that those in need receive adequate support, with reductions applied as income increases.
2025 ACWB Payment Dates
The ACWB payments for 2025 are scheduled as follows:
| Payment Number | Payment Date |
| First | January 10, 2025 |
| Second | July 11, 2025 |
| Third | October 10, 2025 |
How Are Payments Calculated?
The Canada Revenue Agency (CRA) calculates your ACWB payments based on:
- Income Tax Return: Details from the previous year’s return.
- Marital Status: Married or common-law couples usually receive payments through the higher earner or the individual eligible for the disability tax credit.
- Province of Residence: Provincial factors may influence calculations.
- Disability Tax Credit: If applicable, this boosts your total benefit.
How to Apply for the ACWB
Applying for the ACWB is straightforward:
- File Your Tax Return: Include accurate details and submit before November 1, 2025.
- Schedule 6: Complete and include this form with your tax return.
- Disability Tax Credit Certificate (if applicable): Submit Form T2201 to the CRA.
- CRA Determines Eligibility: Once your tax return is processed, the CRA calculates your entitlement and schedules payments.
You can track your payments using the CRA’s My Account service and sign up for reminders.
FAQs
Q: What happens if my income changes during the year? A: Changes in income may affect your eligibility or payment amount. Notify the CRA immediately if your circumstances change.
Q: Can both spouses claim the ACWB? A: Only one spouse can claim the basic benefit, but both may claim the disability supplement if eligible.
Q: Are ACWB payments taxable? A: No, ACWB payments are not taxable as they are a refundable tax credit.
Q: What if I missed filing my tax return on time? A: Late filing may delay or disqualify you from receiving ACWB payments. Submit your return as soon as possible and contact the CRA for guidance.
Q: How is the disability supplement calculated? A: The supplement is based on income and eligibility for the disability tax credit, with reductions starting at $35,098 for singles and $45,932 for families.
If you encounter issues or delays, the CRA is available to help. With the ACWB, eligible individuals and families can better manage living expenses and achieve greater financial stability.