Working income tax benefit (WITB)

The Working income tax benefit (WITB) is a refundable tax credit in Canada. Introduced in 2007, the WITB offers tax relief to working low-income individuals and encourages others to enter the workforce.[1] The WITB has been expanded considerably since its introduction.[2][3][4]

Eligibility

To be eligible for the WITB, the applicant or their spouse must be a Canadian resident for income tax purposes of at least 19 years of age as of December 31st, and cannot be a full-time student.[5][6] The WITB can be claimed on line 453 of the income tax return if their income exceeds $3,000 for the calendar year.

Benefits

As of 2014, the WITB is worth up to $998 for a single individual and $1,813 for couples and single-parent families. Benefits increase, and then decrease, with income, and are completely clawed back at an income of $17,986 for single individuals and $27,736 for families.[7]

References

  1. ↑ "Working income tax benefit (WITB)". Canada Revenue Agency.
  2. ↑ CORAK, MILES (Nov 8, 2013). "This refundable tax credit could reduce income inequality". The Globe and Mail (Wealth Paradox). Retrieved 25 September 2015.
  3. ↑ Wells, Paul. "Harper changes Canada, a cut at a time". Maclean’s.
  4. ↑ OECD (2010). Tax expenditures in OECD countries. Paris: OECD. p. 81. ISBN 9789264076907. Retrieved 25 September 2015.
  5. ↑ "Refundable tax credit for WITB: Application and Eligibility". Canada Revenue Agency. Retrieved 25 September 2015.
  6. ↑ JACKS, EVELYN (Apr 7, 2011). "Take advantage of changes to this year's tax return". The Globe and Mail.
  7. ↑ "Refundable tax credit for WITB: Calculation". Canada Revenue Agency.
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