Working Income Tax Benefit
Working Income Tax Benefit
The Working Income Tax Benefit, also known as the ‘WITB’, is a refundable tax credit that helps provide some tax relief for hard-working, low-income individuals and families in the workforce. The Working Income Tax Benefit is claimed on line 453 of the income tax and benefit return, if working income is over $3,000 and the individual meets the following eligibility requirements:
- 19 Years of age or older by December 31; and
- The individual is a resident of Canada for the purpose of income tax
There is an exception to the above requirements for the Working Income Tax Benefit. If the individual is under 19 but has a spouse, a common-law partner, or a dependant on December 31st. There may also be specific special circumstances that allow or deny the benefit; therefore it’s suggested to contact the professionals to learn more.
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For residents of Ontario, the Working Income Tax Benefit has set amounts of net income, depending on the family type of the person applying. For a family with children (applicant, spouse/partner, and children), family without children (applicant and spouse/partner), and those who are single with children (applicant and children) the cut-off income level is $27,736. For those who are single without children, the income cut-off is set at $17,986. It’s important to note that there is a disability amount, as well as separate levels of income cut-off for disabled individuals; for more information see the CRA website.
For singles without children, the maximum Working Income Tax Benefit payment that is made to individuals, whose income is between $6,992 and $11,332, is $998. For the other groups, the maximum payment is made to individuals whose income is between $10,252 and $15,649. Once an individual begins to exceed this amount, the benefit gradually decreases. For the 2015 tax year, benefit payments are made on July 3rd and October 5th.
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THIS ARTICLE deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other
appropriate professional advice should be sought before acting upon any of the information contained therein.
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