Canada Workers Benefit - Either CRA Error or Software Calculation Error

T1
1

I recently filed T1 returns for a husband and wife. Their combined net income was around 116,000 with the Husband earning about $82k and the Wife earning about $35k. The husband is a motor vehicle mechanic but wants to become a full time firefighter. In 2025 he enrolled at the Ontario Fire Academy and received a T2202A tuition receipt for his tuition fees, which also included 4 months of full time attendance.

When the CRA assessed his spouse’s income tax return they added $354 to the refund I had calculated along with the following explanation;

Explanation of changes and other important information

The Canada workers benefit (CWB) is an earnings supplement for low- and modest-income workers. We changed your Canada workers benefit because our records show that your spouse or common-law partner does not qualify. As a result, we excluded your spouse or common-law partner’s income in our calculation. Your credit is now $354.55. For more information about the CWB, go to canada.ca/canada-workers-benefit.

My understanding is the CWB has never been available to anyone who has more than 13 weeks of full time attendance at school, which makes sense. What I do find puzzling (in a good way?) is the spouse can qualify for the CWB without having to add the student spouse’s income for the purposes of the calculation.

I haven’t had time to fully research, however, if the CRA are correct in their above explanation the software is not calculating the credit correctly. Schedule 6 (CWB) is using their combined income, which results in no advanced CWB.

2

Looks like the CRA are saying if the spouse was a full time student for more than 13 weeks they do not meet the definition of an “Eligible Spouse” for CWB purposes and their income would not get included as part of the Adjusted family net income.

In this case, it would be a software calculation error.

Who an eligible spouse or common-law partner is

For CWB purposes, an eligible spouse is someone who meets all the following conditions:

  • Lives with you as your spouse or common-law partner on December 31 (or, if they died after June 30, 2025, they were your cohabiting spouse or common-law partner on the date of death and you were not the cohabiting spouse or common-law partner of another individual on December 31, 2025)

  • Is a resident of Canada throughout the year

Your spouse or common-law partner is not an eligible spouse for the CWB purposes if any of the following applies:

  • Are enrolled as a full-time student at a designated educational institution for more than 13 weeks in the year unless, on December 31, they have an eligible dependant

  • Are confined to a prison or similar institution for a period of at least 90 days during the year

  • Do not have to pay tax in Canada because they are an officer or servant of another country, such as a diplomat, or are a family member or employee of such a person