The Working Income Tax Benefit (WITB) is a refundable tax credit for low-income individuals and families who have a working income over $3,000.
Basically, the WITB is made up of two parts: the basic amount and the disability supplement. The amount you receive for each (as applicable) is calculated based on your working income and your family’s adjusted net income.
Note: If you live in Alberta, British Columbia, Nunavut, or Québec, the amount of working income required to receive the WITB is different than the rest of Canada because these provinces set their own amount.
You can claim the WITB as long as you meet the following conditions:
- You’re a resident of Canada throughout the year
- You’re at least 19 years old on December 31, 2016 and
- You have working income over $3,000
If you’re under 19, you can claim the WITB if you have an eligible spouse or an eligible dependant as of December 31. An eligible spouse (with respect to the WITB) is someone who meets the following conditions. He or she:
- was your spouse or common-law partner on December 31, 2016
- was a resident of Canada throughout the year
- wasn’t a full-time student enrolled at a designated institution for more than 13 weeks during the year, unless they had an eligible dependant at the end of the year
- wasn’t confined to a prison or similar institution for 90 days or more in 2016 and
- wasn’t exempt from income tax in Canada during a time they were employed as an officer or servant in another country such as a diplomat, or as a family member or employee of such a person at any time during the year
What is adjusted family net income?
Your adjusted family net income is your and your spouse's or common-law partner's income from all source:
- plus the tax-exempt portion of all income you earned or received on a reserve
- plus the total amount of universal child care benefit (UCCB) repayment and registered savings plan (RDSP) repayments
- minus any UCCB and RDSP income received and any deductions for the income or an allowance received as an emergency volunteer
Does my income level exclude me from receiving the WITB?
As previously mentioned, different regions in Canada have different income thresholds for those looking to claim the WITB. Refer to the CRA’s website to see if your income is within that threshold based on your province or territory of residence.
- Only you or your spouse or common-law partner can claim this credit. If you’re both eligible, you’ll need to decide which of you will claim the WITB.
- If one of you applies for and receives the Working Income Tax Benefit Advance, that person must also claim the WITB.
Note: If you received the Working Income Tax Benefit Advance, the amount will be reported in box 10 of the RC210: Working income tax benefit advance payments statement slip that you’ll receive. Remember, if you qualify for the WITB advance payments and want to continue to receive these advance payments, you must apply every year by August 31st. Refer to the CRA’s website for more information and to complete the application form.
- If you or your spouse has an eligible dependant, one of you can claim the WITB on their behalf. An eligible dependant (with respect to the WITB) is someone who meets the following conditions. He or she must be:
- your or your spouse’s child
- under the age of 19 and lived with you on December 31, 2016 and
- ineligible to receive the WITB in 2016
- If you or your spouse claims the disability amount, that person must also claim the WITB
If you’re eligible for both the WITB and the disability amount, you might also be able 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 T2201: Disability Tax Certificate on file for you
Where do I claim this?
If you’re eligible for the WITB, H&R Block’s tax software will automatically calculate your credit amount. However, you’ll need to confirm if you want to claim the WITB amount and, if applicable, the WITB disability supplement. If you’re filing a coupled return with your spouse or common-law partner, you’ll need to also tell us which one of you wants to claim the WITB amount.
You can find your WITB-related questions on the OPTIMIZATION page under the WRAP-UP tab.