Refundable tax credit for Working income tax benefit: Calculation


1. How is the working income tax benefit (WITB) calculated?

The WITB is calculated using the following information:

  • marital status;
  • province or territory of residence;
  • working income;
  • net income;
  • eligible dependant; and
  • eligibility for the WITB disability supplement.

To see how the WITB is calculated, please refer to the calculation sheet applicable to you, or you can use the Canada Revenue Agency (CRA) Child and family benefits calculator to get an estimate of your benefit.

2. What is the maximum amount of WITB I may receive?

WITB is intended for low-income individuals and families who have working income earned from employment or business.

For single individuals without children, the maximum amount of WITB is paid if working income is between $7,112 and $11,675 for 2016. The WITB payment is gradually reduced when net income is more than $11,675 (this is referred to as the base threshold). No WITB is paid when net income exceeds $18,529. These amounts vary slightly for residents of Alberta, Quebec, Nunavut and British Columbia.

For families, the maximum amount of WITB is paid if the family's working income is between $10,472 and $16,122 for 2016. The WITB payment is gradually reduced when family net income is more than $16,122 (this is referred to as the base threshold). The WITB payment is reduced to zero once family net income exceeds $28,576. These amounts vary slightly for residents of Alberta, Quebec, Nunavut and British Columbia.

For single individuals and families who are eligible and entitled to WITB disability supplement, the income thresholds will be a bit higher. See amounts below.

3. What are the WITB and WITB disability supplement amounts for the 2016 tax year (except Quebec)?

2016 tax year

WITB amounts

Canada
(excluding Alberta, Quebec, British Columbia and Nunavut)

British Columbia

Nunavut

Alberta

Maximum benefit (single) $1,028 $1,242 $659 $1,123
Maximum benefit (family) $1,868 $1,972 $1,319 $1,684
Working income (single) over $3,000 over $4,750 over $6,000 Over $2,760
Working income (family) over $3,000 over $4,750 over $6,000 Over $2,760
Base threshold (single) $11,675 $12,786 $22,237 $12,230
Base threshold (family) $16,122 $17,234 $28,352 $16,678
Net income where WITB is reduced to zero (single) $18,529 $20,314 $38,311 $19,717
Net income where WITB is reduced to zero (family) $28,576 $29,186 $44,438 $27,905
2016 tax year

WITB disability supplement amounts

Canada
(excluding Alberta, Quebec, British Columbia and Nunavut)

British Columbia

Nunavut

Alberta

Maximum WITB disability supplement ** $514 $573 $322 $514
Disability supplement working income (single and family) over $1,150 over $2,295 over $4,800 Over $910
Disability supplement base threshold (single) $18,531 $20,308 $38,359 $19,717
Disability supplement base threshold (family) $28,575 $29,170 $44,474 $27,908
Net income where WITB disability supplement is reduced to zero (single) $21,958 $23,679 $40,506 $23,144
Net income where WITB disability supplement is reduced to zero (family) $32,002 $32,541 $46,621 $31,335

** for each eligible individual excluding dependants

For residents of Canada, including residents of Alberta, British Columbia and Nunavut, but excluding residents of Quebec:

  • Family refers to single parents (including separated, divorced, or widowed parents), and married or common-law couples with or without eligible dependants
  • Single refers to single individuals (including separated, divorced, or widowed individuals) with no eligible dependants

4. What are the WITB and WITB disability supplement amounts for the 2016 tax year (Quebec only)?

2016 tax year

WITB amounts

Single with no children

Single with children

Family with no children

Family with children

Maximum benefit $1,653.12 $967.68 $2,580.95 $1,007.20
Working income $2,400.00 $2,400.00 $3,600.00 $3,600.00
Base threshold $12,067.39 $12,135.63 $18,529.30 $18,682.79
Net income where WITB is reduced to zero $20,332.99 $16,974.03 $31,434.05 $23,718.79
2016 tax year

WITB disability supplement amounts

Single with no children

Single with children

Family with no children

Family with children

Maximum WITB disability supplement** $530.06 $530.06 $530.06 $530.06
Disability supplement working income $1,200.00 $1,200.00 $1,200.00 $1,200.00
Disability supplement base threshold $20,332.99 $16,974.03 $31,434.05 $23,718.79
Net income where WITB disability is reduced to zero $22,983.29 $19,624.33 $34,084.35 $26,369.09

** for each eligible individual excluding dependents

For residents of Quebec:

  • Family with children refers to married or common-law couples with eligible dependants
  • Family without children refers to married or common-law couples without eligible dependants
  • Single with children refers to single individuals (including separated, divorced, or widowed individuals) with eligible dependants
  • Single without children refers to single individuals (including separated, divorced, or widowed individuals) without eligible dependants
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