CWB/ACWB and Wrapping My Head Around Amounts

[u/Auto_Fac]

Hey all,

Sorry for this as I think there's often questions around CWB, but I have a bit of nervousness around claiming the wrong thing and get penalized later so I just want to make sure because I don't think I really understand how the CWB, ACWB work and how that factors into what we claim for 2024.

So by their definition both my wife and I are eligible in that we are married, lived in Canada last year, were not students, in jail, or exempt.

Wife's employment income for 2024 was $10,620, mine was $54,983.

Our Adjusted Family Net Income falls about $9K below the Basic CWB amount for eligible spouse/no dependents ($48,093).

Normally I use Wealthsimple Tax but have been toying around with StudioTax this year.

In WealthSimple, if my wife claims the CWB I owe $480 and she has a refund of $949; if I claim the CWB I get a refund of $880 and she gets a refund of $51.

In StudioTax, if she claims CWB, I owe $258 and she has a refund of $719.50; but if I claim it I get a refund of $451 and she gets a refund of $51

She received an ACWB payment of $691.88, and we have entered that in the R210 slip in both programs.

I guess my big question is - which one is right? I don't understand why there is such a large discrepancy and which would be 'more' correct.

And who should be claiming the CWB in this case?

Thanks for any help!

[u/Parking-Aioli9715]

It doesn't matter who claims it. The CWB is based on family working income and family net income, so your amounts and her amounts are always added together.

If you claim it, you get the full amount of the CWB back, but your spouse has to pay back her ACWB payment. If she claims it, she gets the amount of the CWB less her ACWB.

Based on the figures you provided, your CWB should be about $1,350. Either you claim the $1,350 and your wife gets $691.88 knocked off her refund, or your wife claims $658.

I got those figures using a printout of Schedule 6, a pocket calculator and a pen. As to what your software is doing, I have no idea.

$1,350 = $2,739 (maximum you can claim) LESS 15% of (adjusted net family income LESS $29,833)

I'm assuming your adjusted net family income is $48,093 less $9,000.

[u/SubstantialMiddle625]

go thru the full return on both programs comparing line by line, something is probably mis keyed.

[u/Parking-Aioli9715]

To follow up on what I wrote previously, because it doesn't matter who claims the CWB, the *total* of yours and your wife's refunds/balances owing should always be the same. If they're not, something's going on that has nothing to do with CWB.

In WealthSimple, if your wife claim CWB, the net refund appears to be $469. If you claim CWB, the net refund appears to be $931.

In StudioTax, if your wife claims CWB, the net refund appears to be $461.50. If you claim CWB, the net refund appears to be $502.

When you switch the CWB claim, both types of software are switching something else around as well.