Tax Incentives: What You Need To Know for Tax Season
It’s everybody’s favourite time of the year—tax season! Hey, we know how stressful it can be to file taxes. From paperwork to paying money, it can be a headache. Sometimes it’s tough enough just understanding incentives and if you qualify. Let’s make this year easier!
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.
In 2022, anyone eligible for the Manitoba Education Property Tax Credit can receive up to $437.50 for the 2022 tax year. 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.
Aside from the basic $437.50, you can still qualify for higher returns. If you rent, you may receive as much as $525 through the Residential Renters Tax Credit. If you’ve rented a home in 2022, you can claim up to $43.75 per month.
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 $294 through this rebate. 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 rebate is calculated based on net school taxes paid after taking into account the Basic and Seniors’ Education Property Tax Credits (EPTC). The rebate is reduced by 1.25% 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 $250, 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 more ways to save money in 2023.
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