I am bit lost at how CWB work. Here is an example: T1 2022 tax Payable = $1698 CWB = 1531 Owing = 167.45 Doesn’t this mean the CWB has been fully used to deduct the tax payable? Why does the client still receive ACWB in the amount of 765.5 or 1/2 of the previous CWB in 2023??

In 2022 it was only a refundable credit claimed on the T1. In 2023, they started to pay it out quarterly (in advance), to those who CRA expected would otherwise claim it on their 2023 T1. For 2023, those recipients will get a RC210 slip stating the amount of ACWB they received. They may still qua…

You will also find that if the client qualifies for the CWB in 2023 any AWB received during 2023 as evidenced by the RC210 is added as income tax payable on line 41500 on schedule 1 of the 2023 T1 return. This essentially reduces the clients 2023 refund by the amount of the AWB or increases their a…

dang, you are right. I just tested it. So if you are not qualified for CWB in 2023, then you got free money from RC210. But I dont see any deduction in the CWB in their Refundable Tax Credits in 2023 if they are indeed qualified for CWB. I think they still get the amount of credits calculated in 202…

As a reference as to why there is no repayment required, see my note at the bottom of this item: [image] Advance canada workers benefit payments Tax Topics Wondering if @taxcycle could add a paragraph in the letter or something else to show the benefit that they’ll have to…

[image] CalgaryTax91: I think they still get the amount of credits calculated in 2023, but they just need to pay tax on the RC210. No, they don’t pay tax on the RC210 that entire amount gets added to income tax payable, so the entire amount gets deducted from their tax refund to a maximum of …

Ok gotcha. that makes perfect sense now!!! Thanks for the clarification!!!

Advanced Canada Worker Benefit

Tax Topics

Allen March 22, 2024, 5:30pm 5

As a reference as to why there is no repayment required, see my note at the bottom of this item:

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Advanced Canada Worker Benefit

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