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.
The WITB consists of a basic amount and a disability supplement.
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.
However, 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.
If you had an eligible spouse, only one of you can claim the basic WITB.
If you had an eligible dependant, only one person can claim the basic WITB for that eligible dependant.
If you had an eligible spouse, and one of you is entitled to the disability amount, that person should claim both the basic WITB and the WITB disability supplement.
If you had an eligible spouse and both of you are entitled to the disability amount, only one of you can claim the basic WITB. However, each of you must claim the WITB disability supplement on a separate Schedule 6.
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.
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 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.
What is an eligible dependant?
For the purpose of the WITB, an eligible spouse is a person who meets all the following conditions. He or she:
- was your spouse or common-law partner on December 31, 2017;
- was a resident of Canada throughout 2017;
- was not a full-time student enrolled at a designated educational institution for a total of more than 13 weeks in the year, unless he or she had an eligible dependant at the end of the year;
- was not confined to a prison or similar institution for a period of 90 days or more during the year; and
- was not exempt from income tax in Canada for a period in the year when the person was an officer or servant of another country, such as a diplomat, or a family member or employee of such a person at any time in the year.
What is an eligible spouse?
For the purpose of the WITB, an eligible dependant is a person who meets all the following conditions. He or she:
- was your or your spouse’s or common-law partner’s child;
- was under 19 years of age and lived with you on December 31, 2016; and
- was not eligible for the WITB for 2017.
If you would like more information or if you would like help navigating the rules relating to the Working Income Tax Benefit credit, contact GB Pilley & Associates Ltd., Chartered Professional Accountants at 604 926 3522.