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.