If you’ve struggled to make ends meet over the last year, you’re not alone. The pandemic has put a lot of financial strain on many Manitobans and it can feel very overwhelming if you don’t know what to do next, especially with tax season coming.
The good news is, there are ways to save and if you live in the province, you may be eligible for the Manitoba Education Property Tax Credit. We’re going to break down what the credit is, the eligibility requirements and how you can claim the incentive. We understand tax time can become stressful and we want to help make the process a little easier so you can get the most out of your return.
What is the Manitoba Education Property Tax Credit?
If you live in Manitoba, there are opportunities for you to save on your taxes. The Manitoba Education Property Tax Credit is designed to cover school taxes or a portion of your rent either on your municipal property tax statement or through your income tax return. This credit is meant to give Manitobans a bit of a break on their taxes.
Who can claim the credit and how do you claim it?
All Manitoban households (both rented and owned) may be eligible for the credit. Seniors may also be eligible for an additional credit.
New or first-time homeowners can save up to $700 off their property taxes with this credit. A new or first-time homeowner includes someone moving to the province, leaving their current rental accommodations to a home or someone in a newly built home. If you already receive the tax credit on your property tax statement, you won’t be impacted.
Here’s how it works:
- Homeowners must notify their municipality before the municipal property tax statement is printed that year to have the credit applied in that same year. You can do this instead of applying to Manitoba Finance.
- Homeowners who notify their municipality after the statement is printed for that year may claim the credit on their personal income tax return for that year. They will receive the credit on their property tax statement in the next year.
If you rent, you can claim 20% of your rent up to $700. This credit is claimed on the Manitoba Income Tax Form MB479 – Manitoba Credits.
Discounts for Seniors
Seniors aged 65 and older may be eligible for additional savings from the Government of Manitoba.
Here are two incentives you could be eligible for.
Seniors School Tax Rebate
Seniors could be eligible for up to $470. To be eligible, you or your spouse/common-law partner must be:
- 65 years of age or older by December 31 of that year
- Own your home or be liable for paying the school taxes for your residence
- Live in your home
- Be Manitoba residents
The Seniors’ School Tax Rebate is mainly assessed based on income. The rebate is reduced by 2% of net family income over $40,000 and senior households with a net income of $63,500 and higher are not eligible.
Seniors Households with Income Under $40,000
If you’re a senior with a household income of under $40,000, you may be eligible for an additional credit of up to $400, regardless of it you’re a homeowner or a tenant. You can claim this additional amount on your personal income tax return (Manitoba Income Tax Form MB479 – Manitoba Credits).
How can you get an Education Property Tax Credit Advance?
The Manitoba Education Property Tax Credit Advance can only be claimed on a homeowner’s principal residence, which may be more than one home in a year, if you happen to move. The advance is applied directly to the municipal property tax statement.
Here are the requirements for qualifying for the advance:
- The property must be your principal residence
- The property must be assessed as a single residence dwelling
- The homeowner cannot also be receiving the credit on another home in Manitoba
If you’re looking for additional information and resources to help you file your taxes this year, check out the Government of Canada’s Manitoba information guide. You can also check out our blogs to learn the benefits and credits for Manitoba taxes and how to maximize your tax return.
Get into an affordable vehicle with Birchwood Credit
COVID-19 has made it especially hard for Manitobans to maintain good credit and stable finances. If your financial situation and credit score aren’t where you want them to be, don’t worry. We will find an affordable vehicle and payment plan that works with your unique financial situation. We’ll even give you some tips for rebuilding your credit so you can get back on your financial feet.
How can we help? We offer car loans for folks who have less than perfect credit and we look at your entire financial situation when making an approval, not just your credit score. We understand the challenges that come with being in a difficult financial situation and are here to help you through the process.
Our process is easy and hassle-free:
- You can apply easily online in less than three minutes
- We don’t require your SIN to get started
- We only ask for basic contact details, place of residence and basic employment information
- We talk with you and keep you in the loop through the process
We’re here to help
Our team is always here to answer your credit questions and talk about your vehicle options. We now have four locations throughout Winnipeg on Salter, Nairn, Portage (in the Pointe West AutoPark) and Chevrier, our newest office. You can also check out our blog posts to learn how someone with bad credit can get a loan and other helpful tips on rebuilding your credit.
The COVID-19 pandemic has placed financial burdens on many individuals. To ease some of those burdens, we put together a list of 55+ senior discounts in Canada, including businesses that are offering senior hours for safe shopping. Many of these businesses are still open during the COVID-19 pandemic but it’s best to check beforehand.
Around 27,000 Canadians report identity theft each year. There are similar issues in the United States, so much so that in May 2018, the U.S passed a law to mandate free credit freezes as a means of fraud protection. As of 2020, you still cannot get a credit freeze in Canada.
Learn about all the different energy programs Manitoba has in place to improve its energy efficiency, including the Manitoba Hydro Rebates that are offered on select products.
Fill out an online Car Loan Application to get started with one of our experts today.